Analysis of the Impact of Cross-Border Balancing Arrangements for Northern Europe

RAC van der Veen, A Abbasy, RA Hakvoort

Research output: Chapter in Book/Conference proceedings/Edited volumeConference contributionScientificpeer-review

7 Citations (Scopus)

Abstract

This paper presents an agent-based analysis of the impact of different cross-border balancing arrangements on balancing market performance for the case of Northern Europe, i.e. the Netherlands, Germany and the Nordic region, taking into account the change in behaviour of Balance Responsible Parties (BRPs). The four compared arrangements are separate markets, Area Control Error (ACE) netting, balancing energy trading, and a common merit order list. It is found that ACE netting reduces the total Dutch imbalance costs by 25%, but that the more advanced arrangements have the potential to reduce those costs for the Netherlands and Germany by as much as 50%. However, in case of the common merit order list the imbalance risks for Nordic BRPs increase largely because of the regional marginal pricing, and the system balance states of Germany and the Nordic region are largely affected due to changes in BRP behaviour. The large imbalance costs reductions in Germany and the Netherlands are the result of the import of more than half of the balancing energy from the Nordic region, which is possible because of the high availability of cross-border capacity between the areas.
Original languageEnglish
Title of host publication8th International Conference on the European Energy Market
EditorsM. Delimar
Place of PublicationZagreb
PublisherIEEE Society
Pages653-658
Number of pages6
ISBN (Print)978-1-61284-285-1
Publication statusPublished - 2011
Event8th International Conference on the European Energy Market, EEM 2011 - Zagreb, Zagreb, Croatia
Duration: 25 May 201127 May 2011

Publication series

Name
PublisherIEEE

Conference

Conference8th International Conference on the European Energy Market, EEM 2011
Abbreviated titleEEM 11
CountryCroatia
CityZagreb
Period25/05/1127/05/11

Keywords

  • conference contrib. refereed
  • Conf.proc. > 3 pag

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