NDLI: Are flow-based capacity allocation systems well suited for the integration of the European power market?

Content Provider	IEEE Xplore Digital Library
Author	Perekhodtsev, Dmitri Cervigni, Guido
Copyright Year	2011
Description	Author affiliation: LECG Consulting and IEFE, Bocconi University, Italy (Cervigni, Guido) \|\| Compass Lexecon, France (Perekhodtsev, Dmitri)
Abstract	The process of European electricity market integration seems to incline towards using Flow-Based systems to identify the cross-border transmission capacity that is available for market transactions between several interconnected markets. Such systems are believed to better capture the physical nature of power flows between national markets and thus, to allow a more efficient use of existing cross-border transmission capacity. Regional initiatives that are under development in the Central Eastern Europe and Central Western Europe both plan to adopt the Flow-Based capacity allocation system for their market integration programs. The Target Model developed by the ERGEG's Project Coordination Group to identify necessary steps towards full market integration by 2015 also indicates the Flow-Based capacity models as a preferred approach. This paper discusses the main elements of the Flow-Based capacity systems and the mechanism of price formation in such systems when used for implicit or explicit transmission allocation. We also present the challenges faced by the System Operators when implementing such systems, especially when they are used with large national price zones.
Starting Page	659
Ending Page	666
File Size	661580
Page Count	8
File Format	PDF
ISBN	9781612842851
e-ISBN	9781612842868
e-ISBN	9781612842844
DOI	10.1109/EEM.2011.5953093
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2011-05-25
Publisher Place	Croatia
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Couplings Europe Pricing flow-based market coupling Electricity supply industry Security Resource management single market for Electricity Load flow
Content Type	Text
Resource Type	Article

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