Market coupling and the importance of price coordination between power exchanges
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Publication type
Journal article with impact factorPublication Year
2009Journal
EnergyPublication Volume
34Publication Issue
3Publication Begin page
228Publication End page
234
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In Europe, market coupling stands for a further integration of wholesale trading arrangements across country borders. More specifically, it refers to the implicit auctioning of cross-border physical transmission rights via the hourly auctions for electric energy organized by power exchanges (PEXs) one day ahead of delivery. It therefore implies that the PEXs can optimize the clearing of their day-ahead auctions. Due to verticals in the aggregated order curves, the optimal solution can be settled at different prices. In order for prices to give correct locational signals for network development, generation and consumption, price coordination between exchanges is necessary. The paper illustrates this issue, its relevance and discusses how to deal with it.Keyword
Energy Markets, Pricing, Electric Market Equilibrium, Operational Research, Power System Economics, DualityKnowledge Domain/Industry
Special Industries : Energyae974a485f413a2113503eed53cd6c53
10.1016/j.energy.2008.04.013