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Cost reduction potentials in the German market for balancing power

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  • Flinkerbusch, Kai
  • Heuterkes, Michael
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    Abstract

    This article examines potential cost reductions in the market for balancing power by pooling all four German control areas. In a united control area both the procurement and the production of balancing power may be more efficient than in four separated control areas. Our data contain bids on energy procurement as well as balancing power flows in the period from December 2007 to November 2008. A reference scenario simulates the market results for secondary and tertiary balancing power. Subsequently, we simulate a united control area. We show that in the period under review the total costs of balancing power are reduced by 17%.

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-501CGCB-4/2/2a77eba8c323097ef4d7d2fd8b99bc33
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 8 (August)
    Pages: 4712-4718

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4712-4718

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    Web page: http://www.elsevier.com/locate/enpol

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    Keywords: Electricity Balancing power Regulation;

    References

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    1. Chao, Hung-Po & Wilson, Robert, 2002. "Multi-dimensional Procurement Auctions for Power Reserves: Robust Incentive-Compatible Scoring and Settlement Rules," Journal of Regulatory Economics, Springer, vol. 22(2), pages 161-83, September.
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    Cited by:
    1. Simon Hagemann & Christoph Weber, 2013. "An Empirical Analysis of Liquidity and its Determinants in The German Intraday Market for Electricity," EWL Working Papers 1317, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Oct 2013.
    2. Flinkerbusch, Kai, 2011. "A more efficient procurement mechanism for reserver capacity in the German market for balancing power," CAWM Discussion Papers 52, Center of Applied Economic Research Münster (CAWM), University of Münster.
    3. Kai Flinkerbusch, . "A more efficient procurement mechanism for reserve capacity in the German market for balancing power," Working Papers 201178, Institute of Spatial and Housing Economics, Munster Universitary.

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