Possible effects of balancing market integration on performance of the individual markets

Different cross-border arrangements for exchange of balancing services in electricity markets can potentially have different effects on the behavior of market parties and consequently market performance as a whole. This paper focuses on BSP-TSO trading (foreign bidding) as one of the main four arran...

Full description

Saved in:
Bibliographic Details
Main Authors: Abbasy, A., van der Veen, R., Hakvoort, R.
Format: Conference Proceeding
Language:English
Subjects:
Distribution functions
Electricity supply industry
Europe
Mathematical model
MATLAB
Portfolios
Power generation
Citations: Items that cite this one
Online Access:Request full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Different cross-border arrangements for exchange of balancing services in electricity markets can potentially have different effects on the behavior of market parties and consequently market performance as a whole. This paper focuses on BSP-TSO trading (foreign bidding) as one of the main four arrangements proposed for exchange of balancing services across borders. We analyze the case of Norway and the Netherlands as a main balancing market integration case in Northern Europe and investigate the possible effect of enabling BSP-TSO trading (as one step towards full balancing market integration) between these countries on the performance of the two individual markets. An agent-based model is developed in MATLAB through which we study the possible change in behavior of market parties as a result of BSP-TSO trading implementation.
ISSN:2165-4077
DOI:10.1109/EEM.2011.5953083