Operationally robust offshore bidding zones
Market design for efficient balancing
M.A. Potters (TU Delft - Technology, Policy and Management)
P.W.G. Bots – Graduation committee member (TU Delft - Policy Analysis)
Laurens J. Vries – Graduation committee member (TU Delft - Energy and Industry)
J.M. Van Leeuwen – Mentor (TenneT TSO B.V.)
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Abstract
The large-scale deployment of offshore wind farms (OWFs) in the North Sea, targeting 300 GW by 2050, presents opportunities for carbon-neutral energy but challenges conventional grid connection methods. Offshore bidding zones (OBZs), characterised by variable generation and limited dispatchable demand, require innovative imbalance management to maintain energy balance. This thesis models the bidding behaviour of balancing responsible parties (BRPs) in sequential electricity markets using Linny-R, examining the impact of production uncertainty, price risks, and gate closure times on imbalance volumes. Results highlight trade-offs between shortages and curtailment under varying imbalance penalties and gate closure times, with reduced gate closure times significantly mitigating imbalances. Policy recommendations emphasise the need for flexible demand, risk mitigation mechanisms, and coupled imbalance pricing to enhance market efficiency and energy balancing incentivise in OBZs.