IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp1494.html
   My bibliography  Save this paper

Flexible Short-Term Power Trading: Gathering Experience in EU Countries

Author

Listed:
  • Karsten Neuhoff
  • Carlos Batlle
  • Gert Brunekreeft
  • Christos Vasilakos Konstantinidis
  • Christian Nabe
  • Giorgia Oggioni
  • Pablo Rodilla
  • Sebastian Schwenen
  • Tomasz Siewierski
  • Goran Strbac

Abstract

EU power market design has been focused on facilitating trading between countries and for this has defined interfaces for market participants and TSOs between countries. The operation of power systems and markets within countries was not the focus of these developments. This may have contributed to difficulties of defining or implementing a common perspective in particular on intraday and balancing approaches. This motivated us to pursue an in depth reviewof six European power markets to contribute to a better understanding of the common elements, differences and the physical and institutional reasons for these. With this paper we aim to present the main insights emerging from the reviews and to identify where there is a need for alignment of operational aspects and short-term trading arrangements, taking into account system requirements individual member states face in operating their power system.

Suggested Citation

  • Karsten Neuhoff & Carlos Batlle & Gert Brunekreeft & Christos Vasilakos Konstantinidis & Christian Nabe & Giorgia Oggioni & Pablo Rodilla & Sebastian Schwenen & Tomasz Siewierski & Goran Strbac, 2015. "Flexible Short-Term Power Trading: Gathering Experience in EU Countries," Discussion Papers of DIW Berlin 1494, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1494
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.510899.de/dp1494.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mar Reguant, 2014. "Complementary Bidding Mechanisms and Startup Costs in Electricity Markets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(4), pages 1708-1742.
    2. Karsten Neuhoff & Benjamin F. Hobbs & David Newbery, 2011. "Congestion Management in European Power Networks: Criteria to Assess the Available Options," Discussion Papers of DIW Berlin 1161, DIW Berlin, German Institute for Economic Research.
    3. Weber, Christoph, 2010. "Adequate intraday market design to enable the integration of wind energy into the European power systems," Energy Policy, Elsevier, vol. 38(7), pages 3155-3163, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ocker, Fabian & Jaenisch, Vincent, 2020. "The way towards European electricity intraday auctions – Status quo and future developments," Energy Policy, Elsevier, vol. 145(C).
    2. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst & van den Broek, Machteld, 2018. "Identifying barriers to large-scale integration of variable renewable electricity into the electricity market: A literature review of market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2181-2195.
    3. Holmberg, Pär & Tangerås, Thomas & Ahlqvist, Victor, 2018. "Central- versus Self-Dispatch in Electricity Markets," Working Paper Series 1257, Research Institute of Industrial Economics, revised 27 Mar 2019.
    4. de Jong, Jacques & Hassel, Arndt & Egenhofer, Christian & Jansen, Jaap & Xu, Zheng, 2017. "Improving the Market for Flexibility in the Electricity Sector," CEPS Papers 13093, Centre for European Policy Studies.
    5. Borne, Olivier & Korte, Klaas & Perez, Yannick & Petit, Marc & Purkus, Alexandra, 2018. "Barriers to entry in frequency-regulation services markets: Review of the status quo and options for improvements," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 605-614.
    6. Heilmann, Erik & Klempp, Nikolai & Wetzel, Heike, 2020. "Design of regional flexibility markets for electricity: A product classification framework for and application to German pilot projects," Utilities Policy, Elsevier, vol. 67(C).
    7. Joos, Michael & Staffell, Iain, 2018. "Short-term integration costs of variable renewable energy: Wind curtailment and balancing in Britain and Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 86(C), pages 45-65.
    8. Karsten Neuhoff & Nolan Ritter & Aymen SalahAbou-El-Enien & Philippe Vassilopoulos, 2016. "Intraday Markets for Power: Discretizing the Continuous Trading?," Working Papers EPRG 1609, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    9. Tim Schittekatte & Valerie Reif & Leonardo Meeus, 2021. "Welcoming New Entrants into European Electricity Markets," Energies, MDPI, vol. 14(13), pages 1-20, July.
    10. Brijs, Tom & De Jonghe, Cedric & Hobbs, Benjamin F. & Belmans, Ronnie, 2017. "Interactions between the design of short-term electricity markets in the CWE region and power system flexibility," Applied Energy, Elsevier, vol. 195(C), pages 36-51.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Holmberg, Pär & Tangerås, Thomas & Ahlqvist, Victor, 2018. "Central- versus Self-Dispatch in Electricity Markets," Working Paper Series 1257, Research Institute of Industrial Economics, revised 27 Mar 2019.
    2. Karsten Neuhoff & Sophia Rüster & Sebastian Schwenen, 2015. "Power Market Design beyond 2020: Time to Revisit Key Elements?," Discussion Papers of DIW Berlin 1456, DIW Berlin, German Institute for Economic Research.
    3. repec:hal:wpaper:halshs-00816355 is not listed on IDEAS
    4. repec:diw:diwwpp:dp1856 is not listed on IDEAS
    5. David P. Brown & Andrew Eckert & Douglas Silveira, 2023. "Strategic interaction between wholesale and ancillary service markets," Competition and Regulation in Network Industries, , vol. 24(4), pages 174-198, December.
    6. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2017. "Has renewable energy induced competitive behavior in the Spanish electricity market?," Energy Policy, Elsevier, vol. 104(C), pages 171-182.
    7. David P. Brown & Andrew Eckert, 2018. "Analyzing the Impact of Electricity Market Structure Changes and Mergers: The Importance of Forward Commitments," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(1), pages 101-137, February.
    8. Kursad Derinkuyu & Fehmi Tanrisever & Nermin Kurt & Gokhan Ceyhan, 2020. "Optimizing Day-Ahead Electricity Market Prices: Increasing the Total Surplus for Energy Exchange Istanbul," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 700-716, July.
    9. Ochoa, Camila & van Ackere, Ann, 2015. "Winners and losers of market coupling," Energy, Elsevier, vol. 80(C), pages 522-534.
    10. Ocker, Fabian & Jaenisch, Vincent, 2020. "The way towards European electricity intraday auctions – Status quo and future developments," Energy Policy, Elsevier, vol. 145(C).
    11. David Benatia & Samuel Gingras, 2023. "Reaching New Lows? The Pandemic’s Consequences for Electricity Markets," The Energy Journal, , vol. 44(4), pages 195-221, July.
    12. Nicholas Ryan, 2017. "The Competitive Effects of Transmission Infrastructure in the Indian Electricity Market," NBER Working Papers 23106, National Bureau of Economic Research, Inc.
    13. Brown, David P. & Eckert, Andrew & Shaffer, Blake, 2023. "Evaluating the impact of divestitures on competition: Evidence from Alberta’s wholesale electricity market," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    14. Neda Hajibandeh & Mehdi Ehsan & Soodabeh Soleymani & Miadreza Shafie-khah & João P. S. Catalão, 2017. "The Mutual Impact of Demand Response Programs and Renewable Energies: A Survey," Energies, MDPI, vol. 10(9), pages 1-18, September.
    15. Ketterer, Janina C., 2014. "The impact of wind power generation on the electricity price in Germany," Energy Economics, Elsevier, vol. 44(C), pages 270-280.
    16. Koichiro Ito & Mar Reguant, 2016. "Sequential Markets, Market Power, and Arbitrage," American Economic Review, American Economic Association, vol. 106(7), pages 1921-1957, July.
    17. Cullen, Joseph A. & Reynolds, Stanley S., 2023. "Market dynamics and investment in the electricity sector," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    18. Sarfati, Mahir & Hesamzadeh, Mohammad Reza & Holmberg, Pär, 2018. "Increase-Decrease Game under Imperfect Competition in Two-stage Zonal Power Markets –​ Part I: Concept Analysis," Working Paper Series 1253, Research Institute of Industrial Economics.
    19. David P. Brown & Andrew Eckert, 2022. "Pricing Patterns in Wholesale Electricity Markets: Unilateral Market Power or Coordinated Behavior?," Journal of Industrial Economics, Wiley Blackwell, vol. 70(1), pages 168-216, March.
    20. Pape, Christian, 2018. "The impact of intraday markets on the market value of flexibility — Decomposing effects on profile and the imbalance costs," Energy Economics, Elsevier, vol. 76(C), pages 186-201.
    21. Katrin Schmitz & Christoph Weber, 2013. "Does One Design Fit All? On The Transferability Of The PJM Market Design To The German Electricity Market," EWL Working Papers 1302, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Apr 2013.
    22. Chaves-Ávila, José Pablo & van der Veen, Reinier A.C. & Hakvoort, Rudi A., 2014. "The interplay between imbalance pricing mechanisms and network congestions – Analysis of the German electricity market," Utilities Policy, Elsevier, vol. 28(C), pages 52-61.

    More about this item

    Keywords

    Electricity trading; Power system operation; Institutional analysis;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp1494. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.