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Coordinating Cross-Country Congestion Management: Evidence from Central Europe

Friedrich Kunz and Alexander Zerrahn
Authors registered in the RePEc Author Service: Alexander Zerrahn and Friedrich Kunz

The Energy Journal, 2016, vol. Volume 37, issue Sustainable Infrastructure Development and Cross-Border Coordination

Abstract: We employ a detailed two-stage model to simulate the operation of the Central Eastern European electricity market and network. Implementing different cases of coordination in congestion management between national transmission system operators, numerical results show the beneficial impact of closer cooperation. Specific steps comprise the sharing of network and dispatch information, cross-border counter-trading, and multilateral redispatch in a flow-based congestion management framework. Efficiency gains are accompanied by distributional effects. Closer economic cooperation becomes especially relevant against the background of changing spatial generation patterns, deeper international integration of national systems, and spillovers of national developments to adjacent systems.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2016
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