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Balancing Responsibility: What model works for Europe?

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  • Neuhoff, Karsten

Abstract

We first discuss different rules for pricing and provision of balancing across EU member states and their implications. Some member states face significant transmission constraints inside their pricing zone(s). In principle, this can be avoided with smaller pricing zones and in some instances transmission expansion. We discuss in the second part, how in practice different strategies are pursued to accommodate internal transmission constraints within balancing mechanisms. European market integration has to date focused on enhancing day-ahead trading. We discuss in a third part the experience, benefits and perspectives for better integrating balancing mechanisms across EU member states before we conclude.

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  • Neuhoff, Karsten, 2015. "Balancing Responsibility: What model works for Europe?," EconStor Research Reports 125565, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esrepo:125565
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    Cited by:

    1. Jan Stede, 2016. "Demand Response in Germany: Technical Potential, Benefits and Regulatory Challenges," DIW Roundup: Politik im Fokus 96, DIW Berlin, German Institute for Economic Research.

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