Implicit auctioning on the Kontek Cable: third time lucky?
Meeus, Leonardo
Meeus, Leonardo
Citations
Altmetric:
Publication Type
Working paper
Editor
Supervisor
Publication Year
2010
Journal
Book
Publication Volume
Publication Issue
Publication Begin page
Publication End page
Publication NUmber of pages
Collections
Abstract
Cross-border capacities in Europe are currently inefficiently used. Implicit auctioning is about eliminating these cross-border trade inefficiencies by internalizing the arbitrage into the auction procedures of the Power Exchanges that are organizing trade nationally. On the Kontek Cable, implicit auctioning has been implemented without price coordination between the involved Power Exchanges. This implementation, referred to as “volume or dome coupling” as opposed to “price coupling”, has been argued to be institutionally easier to implement. The Kontek Cable experimented with three different implicit auctioning implementations whose performance we analyze empirically in this paper. We find that the third implementation is significantly outperforming the previous two implementations, but in this third implementation stakeholders partly abandoned the volume coupling approach they initially believed to be a viable alternative to price coupling.
Research Projects
Organizational Units
Journal Issue
Keywords
Energy Markets, Electricity, Transmission, Market Coupling, Congestion Management