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3442. Local Network Coordination - A Market Design for Trading Congestions
Invited abstract in session MD-14: Modelling European market coupling , stream Energy Markets.
Monday, 14:30-16:00Room: 16 (building: 116)
Authors (first author is the speaker)
| 1. | Paul Seifert
|
| Industrial Economy and Technology Management, Norwegian University of Science and Technology | |
| 2. | Steffen Bakker
|
| Industrial Economics and Technology Management, NTNU | |
| 3. | Stian Backe
|
| Department of industrial economics and technology management, The Norwegian University of Science and Technology |
Abstract
Getting new grid access permits is challenging for Norwegian grid customers to a shortage of transmission system capacity. Grid reinforcements require long lead times and are not expected to ease the situation soon. If capacity limits are reached, requests face rejections for grid access. Grid managers have to ensure capacity limitations are met all the time. Enough capacity is available for most of the time, but some critical hours see spikes in which load profiles layer to unfortunate spikes. The consequences are severe and hinder economic development. So far, there are no signals indicating the grid's status on which coordinated actions could be aligned. Upcoming congestion hours are not forseeable, nor exist incentives to influence load profiles according to grid status. Alternatively, we advocate for congested customers to team up with entities with existing capacity rights and pool them in energy (capacity) communities. Steered by price signals from utility-cost equilibria, members coordinate their load profiles and assign capacity scarcity prices if a capacity violation occurs. We designed a two-stage combination of load flow optimal dispatch models with an equilibrium model to resolve the congestion. We demonstrate that this market design enables more customers to join the electricity grid through an efficient price-based trading mechanism, which adheres to grid restrictions, is incentive-compatible, and allows cost recovery.
Keywords
- Electricity Markets
- OR in Energy
- Energy Policy and Planning
Status: accepted
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