TY - GEN
T1 - Off-shore Bidding Zones under Flow-Based Market Coupling
AU - Kenis, Michiel
AU - Delarue, Erik
AU - Bruninx, Kenneth
AU - Dominguez, Fernando
N1 - Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
PY - 2023
Y1 - 2023
N2 - The market integration of hybrid off-shore projects, consisting of wind farms and transmission assets connecting different market zones, requires re-examining bidding zone definitions. Policy makers consider separate off-shore bidding zones to optimally integrate off-shore wind farms in power systems. In this paper, we apply Advanced Hybrid Coupling to include off-shore DC transmission lines in flow-based market coupling, and compare different bidding zone configurations. We find that off-shore bidding zones lead to a transfer of welfare: the producers' surplus of off-shore wind farm owners decreases as a result of a lower average price and the congestion rent for TSOs increases. Despite that an off-shore bidding zone signals transmission scarcity better, it impacts the need for support instruments for off-shore wind farms.
AB - The market integration of hybrid off-shore projects, consisting of wind farms and transmission assets connecting different market zones, requires re-examining bidding zone definitions. Policy makers consider separate off-shore bidding zones to optimally integrate off-shore wind farms in power systems. In this paper, we apply Advanced Hybrid Coupling to include off-shore DC transmission lines in flow-based market coupling, and compare different bidding zone configurations. We find that off-shore bidding zones lead to a transfer of welfare: the producers' surplus of off-shore wind farm owners decreases as a result of a lower average price and the congestion rent for TSOs increases. Despite that an off-shore bidding zone signals transmission scarcity better, it impacts the need for support instruments for off-shore wind farms.
KW - Advanced Hybrid Coupling
KW - Bidding zone configuration
KW - Flow-Based Market Coupling
KW - Off-shore wind power
KW - Standard Hybrid Coupling
UR - http://www.scopus.com/inward/record.url?scp=85169460268&partnerID=8YFLogxK
U2 - 10.1109/PowerTech55446.2023.10202755
DO - 10.1109/PowerTech55446.2023.10202755
M3 - Conference contribution
AN - SCOPUS:85169460268
T3 - 2023 IEEE Belgrade PowerTech, PowerTech 2023
BT - 2023 IEEE Belgrade PowerTech, PowerTech 2023
PB - Institute of Electrical and Electronics Engineers (IEEE)
T2 - 2023 IEEE Belgrade PowerTech, PowerTech 2023
Y2 - 25 June 2023 through 29 June 2023
ER -