EURO 2024 Copenhagen
Abstract Submission

EURO-Online login

2330. The reform of Balancing Markets: Insights from Portugal and Spain

Invited abstract in session MC-9: New Market Designs & Models for 100% Renewable Power Systems, stream Energy Markets.

Monday, 12:30-14:00
Room: 10 (building: 116)

Authors (first author is the speaker)

1. Hugo Algarvio
2. António Couto
LNEG
3. Fernando Lopes
LNEG
4. Ana Estanqueiro
LNEG

Abstract

The legislation of the European Commission for regulating the European Internal Market of Electricity (EIME) establishes measures for the electricity market harmonization. These measures are designed to encourage the active participation of renewable generation in balancing markets (BMs). RESTrade (Multi-agent Trading of Renewable Production) tool models and enables the simulation of existing secondary and tertiary markets but also simulates improvements to current market designs. These changes, developed within the scope of H2020 TradeRES project (grant agreement no. 864276) are: i) 15-minute trades of reserves and penalty prices, ii) participation of smaller (0.1 MW) aggregated or single players, and iii) separate procurement and bidding of energy and capacity reserves. They are aligned with the EIME legislation. Furthermore, the tool can also compute the imbalance settlement (IS) based on the Portuguese or Spanish mechanisms such as a new approach for computing the dynamic procurement of secondary capacity.
This work uses RESTrade to simulate the BMs of Portugal and Spain during 2019, where the weight penalties are around 18.5% and 21.3% of the wholesale market prices. The dynamic procurement increased the usage of its up and down capacities by 12% and 6% in Spain during the period 2019-2022, respectively. The simulation of a new IS mechanism during 2019 in Portugal and Spain, resulted in a reduced penalty of 12.2% and 4.4% of the wholesale prices paid, respectively.

Keywords

Status: accepted

Back to the list of papers