Efficiency Analysis of the Baltic Balancing Market

2018 15th International Conference on the European Energy Market (EEM 2018) 2018
Kristīne Mārciņa, Antans Sauļus Sauhats, Valentīns Lavrinovičs, Gatis Junghāns

In this paper authors analyze technical and cost efficiency gains from transition from divided balancing model to the common regional balancing market model with centralized balance management. The paper analyses key performance indicators of balancing system, as well as discusses balance responsible parties' (BRPs) incentives to keep their portfolios in balance. Due to rather small sample of statistical data from the Baltic market, we simulate conditions of the common regional balancing market and conclude that it is hard for BRPs to predict the system's imbalance direction, therefore BRPs are incentivized to stay in balance at all times in order to minimize imbalance and balancing costs. Analysis of key performance indicators show that the centralized regional balance management and regionally harmonized balancing market with the single price model delivers more accurate, more efficient system balance management.

Keywords
Balancing market; Electricity market design; Frequency restoration reserve; Power system balancing
DOI
10.1109/EEM.2018.8469992
Hyperlink
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85055545939&doi=10.1109%2fEEM.2018.8469992&partnerID=40&md5=801aa7dc7616d146081ce140abbda15f

Mārciņa, K., Sauhats, A., Lavrinovičs, V., Junghāns, G. Efficiency Analysis of the Baltic Balancing Market. In: 2018 15th International Conference on the European Energy Market (EEM 2018), Poland, Łódź, 27-29 June, 2018. Piscataway, NJ: IEEE, 2018, pp.993-998. ISBN 978-1-5386-1489-1. e-ISBN 978-1-5386-1488-4. e-ISSN 2165-4093. Available from: doi:10.1109/EEM.2018.8469992

Publication language
English (en)