2044. Network Constraints in Cross-Border Capacity Market Designs in Europe
Invited abstract in session WB-44: Network constraints in electricity market design, stream Energy Economics & Management.
Wednesday, 10:30-12:00Room: Newlyn 1.01
Authors (first author is the speaker)
| 1. | Kamaldeen Adekola
|
| Engineering Systems and Services, TU Delft | |
| 2. | Kenneth Bruninx
|
| TU Delft |
Abstract
Capacity markets in Europe have traditionally relied on national mandates with little consideration for the highly interconnected nature of European electricity markets. This approach has been shown to lead to suboptimal outcomes. Leveraging the internal EU electricity market to create a more integrated, Europeanized capacity market could yield efficiency gains and reduce the need for investments. Accordingly, the European Commission mandates that foreign capacity providers be treated on an equal, non-discriminatory basis; however, implementation remains a challenge.
Existing studies of cross-border capacity markets account for network constraints using simplified Available Transfer Capacities (ATC). However, this approach oversimplifies the complex interactions within the network—such as loop flows and unscheduled power flows—which can potentially lead to reliability issues due to the network limitations preventing the delivery of power to zones that depend on contracted capacity from generators located in neighbouring zones.
In this study, we investigate whether leveraging the logic behind flow-based market coupling (FBMC) could yield a unified, European cross-border capacity market for annual capacity contracts. We compare the results of explicitly modelling FBMC constraints with ATC representation on a stylised test network. Finally, we discuss how this set-up creates synergy with long-term capacity contracts issued by Member States.
Keywords
- Electricity Markets
- Energy Policy and Planning
- Game Theory
Status: accepted
Back to the list of papers