Congestion Management Methods Used in Electricity Market Coupling

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Supervisor:
Dr. Raisz Dávid Márk
Department of Electric Power Engineering

Liberalization of the electricity markets in the EU is still not finished. The aim of the development is to create an Internal Electricity Market (IEM) which has a so called multi-zonal structure as a remnant of individual member states’ markets. The applicable methods for the integration process are regulated by framework guidelines approved by EU policy makers. The envisioned target model for day-ahead markets is the coupling of power exchanges. Market couplings allocate transmission capacity by implicit methods, i.e. simultaneously with the traded energy. Trading between exchanges and other cross-border transactions are limited by congestions in the electric grid. Coordinated, flow-based capacity calculation methods should be introduced in the near future for determining these transfer capabilities which – unlike the current NTC based calculation – can assess real physical power flows occurring on the network branches of the highly meshed transmission network in the continental Europe.[1]

Market performance can be significantly improved by using market coupling and flow-based capacity calculation jointly, thus the “social welfare” explicitly defined as an objective function can be maximized. Main contribution of my work was upgrading a market clearing algorithm (based on [2]) written at the Department of Electric Power Engineering, by implementing flow-based capacity constraints.

In my paper I present the congestion management methods used and planned to be introduced in Europe, the power exchanges and capacity calculation procedures. I compare the two planned (Central East and Central West European) flow-based allocation process. Based on this information I presented the mathematical formulation of flow-based constraints unattainable from public descriptions and I implemented these expressions into the market coupling solver software running in MATLAB environment. The algorithm uses a new approach independent from the regional solutions to calculate the resulting cross-border bilateral transactions. [3]

I demonstrated the capabilities of the software not only for simple problems but for using capacity figures from a real load flow model of the Central European transmission grid constructed from publicly available information, too. I studied the consequences of outages and I indentified the most critical network elements. With the flow-based market clearing software I examined the network and market parameters affecting the clearing result. For a fast and efficient analysis of the high amount of network data I developed a prefiltering algorithm.

As a result of my work the market coupling solver software can handle the novel capacity definitions defined in the target model of the IEM and it can facilitate further research and academic projects.

References:

[1] Agency for the Cooperation of Energy Regulators: „Framework Guidelines on Capacity Allocation and Congestion Management for Electricity” Published 29th July 2011

[2] Dániel Divényi, Dr. Dávid Raisz, Ádám Sleisz, Prof. András Dán, Dr. Péter Grabner, Zsolt Bertalan, Réka Sárközi: „Three Problems Successfully Solved by Implementing a Power Exchange Clearing Algorithm”, 9th EEM, Florence, Italy, May 2012

[3] Rouquia Djabali, Joel Hoeksema, Yves Langer: „COSMOS description – CWE Market Coupling Algorithm” Final 1.1 version, 14th January 2011

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