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The impact of different strategies for generation shift keys (GSKs) on the flow-based market coupling domain: A model-based analysis of Central Western Europe

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  • Schönheit, David
  • Weinhold, Richard
  • Dierstein, Constantin

Abstract

The trading of electricity across zones relies on cross-border capacities, provided by transmission system operators. The target design of the European Union for capacity calculations is flow-based market coupling, a method that provides trading domains while taking into account grid restrictions. Flow-based market coupling heavily relies on Generation Shift Keys, an essential predictive parameter, translating zonal balance changes that originate from market coupling into nodal injections and consequent line flow changes. This analysis quantifies the effect of different Generation Shift Key strategies on the market coupling domains and individual network elements. A strategy entails suppositions regarding which generating units partake in market changes and to what extent. For this, a novel method for base case computations is proposed that relies on matching historical reference flows of network elements. The results show that different strategies substantially alter the shape and size of flow-based market coupling domains and have a statistically significant impact on individual network elements. For many lines, the average line flow sensitivity to market changes differs between 1% and 5% across strategies and up to 10% for a few lines. Furthermore, the analysis details how the n-1 security criterion influences the composition of domain constraints and to what extent network elements are affected by it. Particularly with regard to the planned geographical expansion of flow-based market coupling and changing regulatory demands for transmission system operators, this work attests to the importance of developing accurate and transparent flow-based market coupling parameters and model-based representations.

Suggested Citation

  • Schönheit, David & Weinhold, Richard & Dierstein, Constantin, 2020. "The impact of different strategies for generation shift keys (GSKs) on the flow-based market coupling domain: A model-based analysis of Central Western Europe," Applied Energy, Elsevier, vol. 258(C).
    • Handle: RePEc:eee:appene:v:258:y:2020:i:c:s0306261919317544
    DOI: 10.1016/j.apenergy.2019.114067
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    References listed on IDEAS

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    1. Florian Leuthold & Hannes Weigt & Christian Hirschhausen, 2012. "A Large-Scale Spatial Optimization Model of the European Electricity Market," Networks and Spatial Economics, Springer, vol. 12(1), pages 75-107, March.
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    Citations

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    Cited by:

    1. Rafael Finck, 2021. "Impact of Flow Based Market Coupling on the European Electricity Markets," NachhaltigkeitsManagementForum | Sustainability Management Forum, Springer, vol. 29(2), pages 173-186, June.
    2. Felten, Björn, 2020. "An integrated model of coupled heat and power sectors for large-scale energy system analyses," Applied Energy, Elsevier, vol. 266(C).
    3. Schönheit, David & Bruninx, Kenneth & Kenis, Michiel & Möst, Dominik, 2022. "Improved selection of critical network elements for flow-based market coupling based on congestion patterns," Applied Energy, Elsevier, vol. 306(PA).
    4. Felten, Björn & Osinski, Paul & Felling, Tim & Weber, Christoph, 2021. "The flow-based market coupling domain - Why we can't get it right," Utilities Policy, Elsevier, vol. 70(C).
    5. Ovaere, Marten & Kenis, Michiel & Van den Bergh, Kenneth & Bruninx, Kenneth & Delarue, Erik, 2023. "The effect of flow-based market coupling on cross-border exchange volumes and price convergence in Central Western European electricity markets," Energy Economics, Elsevier, vol. 118(C).
    6. Bakhshideh Zad, Bashir & Toubeau, Jean-François & Bruninx, Kenneth & Vatandoust, Behzad & De Grève, Zacharie & Vallée, François, 2022. "Supervised learning-assisted modeling of flow-based domains in European resource adequacy assessments," Applied Energy, Elsevier, vol. 325(C).
    7. Leila Mirtajadini & Shamsollah Shirin Bakhsh & Mir Hossein Mousavi & Kioumars Heydari & Saman Yousefvand, 2023. "Prediction of Electricity Trade Partners Based on the Network Theory: The West Asia Community," Foreign Trade Review, , vol. 58(4), pages 544-557, November.
    8. Marie Girod & Efthymios Karangelos & Emily Little & Viktor Terrier & Jean-Yves Bourmaud & Virginie Dussartre & Oualid Jouini & Yannick Perez, 2022. "Improving cross-border capacity for near real-time balancing," Post-Print hal-03894205, HAL.
    9. Poplavskaya, Ksenia & Totschnig, Gerhard & Leimgruber, Fabian & Doorman, Gerard & Etienne, Gilles & de Vries, Laurens, 2020. "Integration of day-ahead market and redispatch to increase cross-border exchanges in the European electricity market," Applied Energy, Elsevier, vol. 278(C).
    10. Schönheit, David & Dierstein, Constantin & Möst, Dominik, 2021. "Do minimum trading capacities for the cross-zonal exchange of electricity lead to welfare losses?," Energy Policy, Elsevier, vol. 149(C).

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    More about this item

    Keywords

    Flow-based market coupling; Cross-border trading capacities; Zonal market coupling; Construction of predictive parameters; Energy system optimization models; Congestion forecast;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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