Evaluating the impacts of priority dispatch in the European electricity market

G. Oggioni, F.H. Murphy and Y. Smeers

Energy Economics, 2014, vol. 42, issue C, 183-200

Abstract: This paper compares the impact of the Nodal Pricing and European Market Coupling organizations on different economic agents of the power system under two main wind policies. Under the “priority dispatch” policy, Transmission System Operators (TSOs) must accommodate all wind energy produced, which thus has the priority over energy produced by conventional plants; in the “no priority dispatch” policy, TSOs can decide not to inject all potential wind power in the grid in order to limit congestion problems. The effects of these two wind policies are measured by developing simple stochastic programming models that consider cases with different wind penetration levels, existing capacities and endogenous investments, as well as assumptions on the EU-ETS.

Keywords: Wind policy; Priority dispatch; Nodal Pricing; Market Coupling; European Electricity Market (search for similar items in EconPapers)
JEL-codes: D58 Q20 Q40 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:42:y:2014:i:c:p:183-200

DOI: 10.1016/j.eneco.2013.12.009

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