Please use this identifier to cite or link to this item:

A Merchant Transmission Approach for Uniform-Price Electricity Markets

File Size Format  
0306.pdf 611 kB Adobe PDF View/Open

Item Summary

Title:A Merchant Transmission Approach for Uniform-Price Electricity Markets
Authors:Staudt, Philipp
Oren, Shmuel
Keywords:Policy, Markets, and Computation
congestion management
energy markets
grid expansion
show 1 moreuniform-price market
show less
Date Issued:07 Jan 2020
Abstract:Uniform-price electricity markets as operated in Germany, for instance, rely on a redispatch mechanism after market clearing to ensure the technical feasibility of generation and consumption schedules with regard to grid constraints. This mechanism determines the costs of congestion management and the welfare loss due to the limited transmission capacity. Therefore, the mechanism is suited to incentivize welfare increasing grid expansion. Depending on the distribution of congestion management costs, it can also align stakeholder interests. In this paper, we present an auction mechanism for transmission grid expansion based on the reduction of redispatch expenditures that theoretically leads to a welfare optimal expansion. The mechanism is applied to a case study in Germany. The results show that the developed mechanism supports an improved planning of grid capacity expansion.
Pages/Duration:10 pages
Rights:Attribution-NonCommercial-NoDerivatives 4.0 International
Appears in Collections: Policy, Markets, and Computation

Please email if you need this content in ADA-compliant format.

This item is licensed under a Creative Commons License Creative Commons