Analysis of Flow-Based Capacity Allocation in Central West and Cental East Europe

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Supervisor:
Sőrés Péter Márk
Department of Electric Power Engineering

Electricity markets in the European Union are not integrated yet; different calculation methods are used in each country to trade the quantity of electricity with one another. In the EU, the Central Western European region introduced first the flow based model for the calculation of electricity quantity in trading. The main purpose of the introduction was to have a greater capacity to be allocated to traders so that the electricity prices will differ less in the countries of the regions. A similar system will soon be implemented in the Central and Eastern European region, and later they want to unite the two regions into one capacity calculation region.

In my thesis I examined the difference between the flow-based and the net transfer capacity calculation methods and I described the calculations of them.

I compared the objectives, methodology and tools of the two capacity calculation regions. The objectives of the two regions are the same, but little differences occur in the methodology, which should be coordinated before uniting the two regions.

I made calculations on a grid model using the PTDFs and presented some critical outages that significantly influence trading.

Finally, I made calculations on real based data on both the flow based and the net transfer capacity method, with a final result of that it is more appropriate to use the more complicated flow-based calculation, because higher capacities can be allocated. When higher capacities are given to the traders, it increases social welfare, so both consumers and producers are happy with the changeover.

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