The future relevance of electricity balancing markets in Europe - A 2030 case study
In the context of an increasing share of variable renewable electricity in the European generation mix the question arises to what extent electricity balancing markets will gain importance in the future. On the one hand, forecast errors of variable renewable electricity drive demand for balancing. O...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2019-04-01
|
| Series: | Energy Strategy Reviews |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2211467X19300021 |
| _version_ | 1818025251163865088 |
|---|---|
| author | André Ortner Gerhard Totschnig |
| author_facet | André Ortner Gerhard Totschnig |
| author_sort | André Ortner |
| collection | DOAJ |
| description | In the context of an increasing share of variable renewable electricity in the European generation mix the question arises to what extent electricity balancing markets will gain importance in the future. On the one hand, forecast errors of variable renewable electricity drive demand for balancing. On the other hand, transmission system operators across Europe progressively coordinate their actions in order to increase efficiency of balancing markets and thus mitigate the rise of imbalances. Against the background of uncertain future framework conditions, i.e. market design and the level of market integration, this paper aims to assess the relevance of electricity balancing markets across Europe for a set of scenarios in a 2030 context. We apply an established large-scale electricity market model of Europe to derive quantitative insights on market shares and revenues from day-ahead, intra-day and balancing markets. The results show that although the amount of balancing energy is expected to increase in the mid-term, the monetary volume of electricity balancing markets will still lay in the range of a few percent of day-ahead market volumes. The results also confirm that the relevance of this market segment is considerably impacted by the development of framework conditions, which also have distinct impacts on different countries and technologies. Keywords: Electricity balancing, Market analysis, Forecast error time series, Variable renewable electricity, Case study |
| first_indexed | 2024-12-10T04:13:08Z |
| format | Article |
| id | doaj.art-4a2d2af9b13c4b70a40f13a8250ba402 |
| institution | Directory Open Access Journal |
| issn | 2211-467X |
| language | English |
| last_indexed | 2024-12-10T04:13:08Z |
| publishDate | 2019-04-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Energy Strategy Reviews |
| spelling | doaj.art-4a2d2af9b13c4b70a40f13a8250ba4022022-12-22T02:02:40ZengElsevierEnergy Strategy Reviews2211-467X2019-04-0124111120The future relevance of electricity balancing markets in Europe - A 2030 case studyAndré Ortner0Gerhard Totschnig1Corresponding author.; Technische Universität Wien, Energy Economics Group, Gusshausstrasse 25-29/370-3, 1040, Wien, AustriaTechnische Universität Wien, Energy Economics Group, Gusshausstrasse 25-29/370-3, 1040, Wien, AustriaIn the context of an increasing share of variable renewable electricity in the European generation mix the question arises to what extent electricity balancing markets will gain importance in the future. On the one hand, forecast errors of variable renewable electricity drive demand for balancing. On the other hand, transmission system operators across Europe progressively coordinate their actions in order to increase efficiency of balancing markets and thus mitigate the rise of imbalances. Against the background of uncertain future framework conditions, i.e. market design and the level of market integration, this paper aims to assess the relevance of electricity balancing markets across Europe for a set of scenarios in a 2030 context. We apply an established large-scale electricity market model of Europe to derive quantitative insights on market shares and revenues from day-ahead, intra-day and balancing markets. The results show that although the amount of balancing energy is expected to increase in the mid-term, the monetary volume of electricity balancing markets will still lay in the range of a few percent of day-ahead market volumes. The results also confirm that the relevance of this market segment is considerably impacted by the development of framework conditions, which also have distinct impacts on different countries and technologies. Keywords: Electricity balancing, Market analysis, Forecast error time series, Variable renewable electricity, Case studyhttp://www.sciencedirect.com/science/article/pii/S2211467X19300021 |
| spellingShingle | André Ortner Gerhard Totschnig The future relevance of electricity balancing markets in Europe - A 2030 case study Energy Strategy Reviews |
| title | The future relevance of electricity balancing markets in Europe - A 2030 case study |
| title_full | The future relevance of electricity balancing markets in Europe - A 2030 case study |
| title_fullStr | The future relevance of electricity balancing markets in Europe - A 2030 case study |
| title_full_unstemmed | The future relevance of electricity balancing markets in Europe - A 2030 case study |
| title_short | The future relevance of electricity balancing markets in Europe - A 2030 case study |
| title_sort | future relevance of electricity balancing markets in europe a 2030 case study |
| url | http://www.sciencedirect.com/science/article/pii/S2211467X19300021 |
| work_keys_str_mv | AT andreortner thefuturerelevanceofelectricitybalancingmarketsineuropea2030casestudy AT gerhardtotschnig thefuturerelevanceofelectricitybalancingmarketsineuropea2030casestudy AT andreortner futurerelevanceofelectricitybalancingmarketsineuropea2030casestudy AT gerhardtotschnig futurerelevanceofelectricitybalancingmarketsineuropea2030casestudy |