Sharing the shortfall: Algorithmic solutions for fair demand curtailment in zonal power markets

Tamás Borbáth and Dirk Van Hertem

Applied Energy, 2025, vol. 390, issue C, No S0306261925005409

Abstract: The transition to renewable energy sources introduces volatility in supply and pricing, which increases the need for robust transmission networks and large electricity market pools. These markets, managed by multiple system operators, rely on central algorithms to balance supply and demand. In situations where supply cannot meet demand, involuntary demand curtailment becomes necessary. In zonal markets with flow-based constraints and uneven zone sizes, curtailment often disproportionately affects smaller zones. This paper evaluates alternative “adequacy patches" – rules for more equitable curtailment allocation – ranging from utilitarian to Rawlsian strategies, and assesses their impact on zonal resource adequacy, marketplace stability, and algorithmic complexity.

Keywords: Resource adequacy; Demand curtailment; Electricity market design (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:390:y:2025:i:c:s0306261925005409

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DOI: 10.1016/j.apenergy.2025.125810

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