Balance Responsibility and Imbalance Settlement in Northern Europe

An Evaluation

Conference paper (2009)
Department
Infrastructure Systems & Services (TPM) (TU Delft)
Copyright: © 2009 Van der Veen, R.A.C.; Hakvoort, R.A.
Balancing market Market design Imbalance settlement Balance responsibility
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Published Date

27-05-2009

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Source:

6th International Conference on the European Energy Market Conference 2009, Leuven, Belgium, 27 - 29 May 2009

Faculty

Technology, Policy and Management

Department

Infrastructure Systems & Services

Abstract

In liberalized power markets, balance responsibility and imbalance settlement are two closely related elements that constitute the heart of a balancing market (which is actually an institutional arrangement establishing market-based balancing). This paper aims to compare balance responsibility and imbalance settlement in the Nordic region, Germany, and the Netherlands. For this purpose, an overview is given of existing design variables and variable values in Northern Europe. Furthermore, the effects of different variables and values on four identified performance indicators have been rated with the support of a causal diagram of the balancing system. We conclude that different design variables create large differences in balancing market performance in Northern Europe, with the Program Time Unit, the scope of balance responsibility and the main imbalance pricing mechanism having the largest impact.