Cost Reduction Potentials in the German Market for Balancing Power
AbstractThis 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 published 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 primary and secondary balancing power, as well as minutes reserve. Subsequently, we simulate a united control area by pooling the historical bids of each control area and by netting the area imbalances. We show that in the period under review the total costs of procured and produced balancing power are reduced by 17 %. The production costs for secondary balancing power are reduced by even 45 %.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute of Spatial and Housing Economics, Munster Universitary in its series Working Papers with number 200107.
Date of creation:
Date of revision:
Electricity; Balancing Power; Regulation;
Find related papers by JEL classification:
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norbert Hiller).
If references are entirely missing, you can add them using this form.