Wednesday, 15:45 - 16:10 h, Room: MA 549

 

Linda Rud
Nodal versus zonal pricing: Market power in day-ahead versus in balancing services

Coauthors: Endre Bjørndal, Mette Bjørndal

 

Abstract:
Presently in the Nordic day-ahead market, zonal pricing or market splitting is used for congestions between a predetermined set of price areas. Intra-zonal congestion is resolved by counter trading or redispatching based on bids from the regulation power market. In a stylized model, we compare this joint model of handling congestions to the theoretically correct method of nodal pricing. Furthermore, we investigate the implications of both schemes for exercising market power in congested network scenarios.

 

Talk 2 of the invited session Wed.3.MA 549
"Congestion management and pricing" [...]
Cluster 18
"Optimization in energy systems" [...]

 

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