A harmonized European electricity balancing market. Incorporation of congestion management into cross-border reserve procurement

Masterarbeit aus dem Jahr 2017 im Fachbereich VWL - Sonstiges Note: 17 Humboldt-Universität zu Berlin (Chair for Management Science) Sprache: Deutsch Abstract: The thesis is structured as follows. Section 2 gives an overview of the current electricity market design and Section 3 integrates the balancing market in the framework and presents the economical and technical conditions including the relevant design variables. Section 4 describes the benefits from cross-border coordination in reserve markets and introduces possible integration models. Within Section 5 model requirements are formulated and one suitable model is selected. Section 6 presents the selected methodology and Section 7 gives the obtained case study. Section 8 evaluates the model and discusses the proposed expansion involving the flow-based approach. Lastly Section 9 concludes and gives further research prospects.European electricity markets have changed profoundly in the last decades. In national markets increased deregulation and privatization have accompanied the decoupling of transmission distribution and generation activities. Simultaneously markets in Europe are becoming more interconnected and harmonized. Until now the focus was primarily set on the harmonization and integration of spot and forward markets. Nonetheless the short-term regulation of flexible short-term operating reserves within the balancing market is gaining attention in academia and industry especially due to the increased penetration of intermitted renewables which leads to more short-term deviation in the power grid and hence to operational uncertainty. Corresponding to the zonal nature of the European power market today's operating reserve markets are mainly organized on a national level. Within a European cross-border balancing market however Transmission System Operators could coordinate their balancing activities with other control areas. Such cross-border balancing markets increase social welfare an