An Integrated Auction-Based Market Coupling Approach - Bridging the Exchange and Bilateral Market Divide

摘要

Achieving a common internal electricity market has been a long-standing objective of the European Union since the start of the liberalisation / deregulation process in the 1990s. The EU has adopted the approach of reaching a common internal electricity market through the interim step of regional markets - among them the South East Europe market. Reaching a real internal market at a regional level is suppose to be easier than trying to unify all EU markets at once. Nevertheless, even on a regional level, where differences between markets might be smaller, the issues of congestion and cross-border capacity allocation are still presents. One question is, for example, whether to use explicit or implicit methods (e.g. market coupling) of capacity allocation. In this paper, a case-study of market coupling on a coordinated grid model (PTDF&BC) delivering maximized social welfare is presented with a newly developed method which implicitly matches bids and offers for energy and at the same time allocates cross-border capacities to the energy from the power exchange and to the energy from bilateral contracts. The method utilizes price-difference bids to serve the OTC market, thus fully integrating all major market situations present today. The case-study investigates the price formation process in 4 similar cases of different complexity: (1) single product energy markets with no network limitations among them, (2) single product energy markets with transfer limitations, (3) single product energy markets including price-difference bid with transfer limitations and (4) multiple product energy markets with transfer limitations. The results are presented for a more complex 6 areas network configuration and also for a simpler 3 areas "linear" network configuration.