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  • The flow-based market coupling domain - Why we can't get it right

The flow-based market coupling domain - Why we can't get it right

Significant welfare gains can be achieved by interlinking electric power systems. A major improvement in this regard has been the implementation of flow-based market coupling (FBMC) in Central Western Europe [Réseau de transportd'électricité (RTE) et al., 2015]. However, recent assessments [Entso-E, 2018] have shown that FBMC is not yet fully understood. We contrast the FBMC domain with the feasible regions in a nodal market design based on a stylized example. Our analysis reveals the essential elements of FBMC, including its positive features. We also show that certain FBMC approximations will always affect welfare to a certain extent.

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Date Issued:
14.03.2021
URN:
urn:nbn:de:hbz:465-20250103-105455-1
DOI:
10.1016/j.jup.2020.101136
Language:
English
Type of Resource:
Text
Keywords:
Flow-based market coupling; Zonal pricing; Welfare
Collection:
E-Publications
Subject categories of the Deutsche Nationalbibliografie:
330 Economics
Hosting institution:
Faculty of Business Administration and Economics, Business Administration, Energy Economics
funding:

The publication of this article was supported by the Publication Fund of the University of Duisburg-Essen.

This research has partly been funded by the Federal Ministry for Economic Affairs and Energy (BMWi) of Germany within the framework of the joint project “KoNeMaSim – Kopplung von Netz-und Marktsimulationen für die Netzplanung” (project number 03ET7526).

Info on primary publication:

Felten, B., Osinski, P., Felling, T., & Weber, C. (2021). The flow-based market coupling domain: Why we can’t get it right. Utilities Policy 70:101136. https://doi.org/10.1016/j.jup.2020.101136

Available online 14 March 2021

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Version of Record / Verlagsversion

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