European Short-term Electricity Market Designs under High Penetration of Wind Power

European Short-term Electricity Market Designs under High Penetration of Wind Power

Chaves Avila, J.P.

Weijnen, M.P.C. (promotor)

Technology, Policy and Management

Engineering Systems and Services

2014-09-11

The EU has ambitious policies for decarbonization of the electricity sector. Due to recent technological developments, wind power already represents a significant share of the generation mix in some European countries. As a result, short-term electricity markets and balancing arrangements must be redesigned to accommodate the increasing variability and unpredictability of generation in an economically efficient way, without endangering system security. Currently, Europe is characterized by heterogeneity of national market designs for short-term electricity markets. This thesis analyzes the efficiency of short-term markets in Europe, in a national context and in the context of cross-border trade. It highlights the effects of interactions between the various short-term markets and balancing arrangements and shows how current market designs and regulations cause distorted price signals. This thesis argues the case for harmonization of national market designs to improve the economic efficiency of cross-border trade in short-term markets. The current initiatives towards the establishment of an Internal Energy Market in Europe are insufficient to ensure economic efficiency and system security of the European electricity system of the future, in which intermittent renewables will play a dominant role.

https://doi.org/10.4233/uuid:cbc2c7bd-d65e-4f4c-9f88-2ab55c11def8

Next Generation Infrastructures Foundation

9789461863485

Institutional Repository

doctoral thesis

(c) 2014 Chaves Avila, J.P.