Impact of High Levels of Wind Penetration on the Exercise of Market Power in the Multi-Area Systems

New European energy policies have set a goal of a high share of renewable energy in electricity markets. In the presence of high levels of renewable generation, and especially wind, there is more uncertainty in the supply. It is natural, that volatility in energy production induces the volatility in energy prices. This can create incentives for...

Mitigating Strategic Bidding in Transmission-constrained Electricity Markets: A Multi-level Optimisation Approach

In the last few decades, the European Union has directed most of its efforts towards the creation of an internal market, free of internal borders, where competition reigns and the invisible hand guides the market to a social optimum. The assumptions on which this ideal is based, however, do not always hold in practice, especially when it...

Congestion management in the Dutch power sector: A quantitative evaluation of policy options

Due to the introduction of a new grid connection policy, transmission system operator TenneT expects congestion to arise on the Dutch transmission grid in the near future. This new connection policy was introduced by the Ministry of Economic Affairs to abolish the discrimination between existing grid users and new entrants, and should improve...

Modeling Strategic Bidding in Congested Electricity Lines

In many cases, congestion is a recurrent problem that exists in electricity lines since the demand, in general, steadily increases whereas lines capacity cannot increase in small increments but only in multiple units of line capacity. Congestion in electricity lines hampers the interconnection of local markets because the interconnection line...