Market Equilibria in Cross-Border Balancing Platform

Cartuyvels, Jacques; Bertrand, Gilles; Papavasiliou, Anthony

dc.contributor.author	Cartuyvels, Jacques
dc.contributor.author	Bertrand, Gilles
dc.contributor.author	Papavasiliou, Anthony
dc.date.accessioned	2024-04-24T06:43:06Z
dc.date.available	2024-04-24T06:43:06Z
dc.identifier.uri	https://dspace.lib.ntua.gr/xmlui/handle/123456789/59261
dc.identifier.uri	http://dx.doi.org/10.26240/heal.ntua.26957
dc.rights	Αναφορά Δημιουργού 3.0 Ελλάδα	*
dc.rights	Αναφορά Δημιουργού 3.0 Ελλάδα	*
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/gr/	*
dc.subject	balancing market	en
dc.subject	cross-border balancing	en
dc.subject	frequency restoration reserve	en
dc.subject	real-time market for reserve	en
dc.title	Market Equilibria in Cross-Border Balancing Platform	en
heal.type	journalArticle
heal.classification	Energy Markets, Policy, and Regulation	en
heal.access	free
heal.recordProvider	ntua	el
heal.publicationDate	2024
heal.bibliographicCitation	Cartuyvels, J., Bertrand, G., & Papavasiliou, A. (2024). Market Equilibria in Cross-Border Balancing Platforms. IEEE Transactions on Energy Markets, Policy and Regulation.	en
heal.abstract	The next phase of electricity market integration in Europe will see the introduction of pan-European balancing platforms, MARI and PICASSO, for the trading of manual and automatic frequency restoration reserve. This paper provides an analytical framework for the study of pricing asymmetries between European member states in this context. The pricing asymmetries are due to balancing incentive components and consist of the unilateral introduction by a member state of either (i) an adder on the imbalance price and balancing price, (ii) an adder on the imbalance price solely, or (iii) the introduction of a real-time price for the trading of real-time balancing capacity. Our analytical framework allows us to characterize the optimal bidding strategy of flexible assets under the different designs and to derive the resulting equilibria. Our analysis demonstrates that adders without the trading of balancing capacity create inefficiencies by distorting the merit order and tend to be detrimental to the member state that introduces it.	en
heal.publisher	IEEE	en
heal.journalName	IEEE Transactions on Energy Markets, Policy, and Regulation	en
heal.journalType	peer-reviewed
heal.fullTextAvailability	false