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The benefits of integrating European electricity markets

David M Newbery (), Goran Strbac and Ivan Viehoff

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: The European Commission’s Target Electricity Model aims to integrate EU electricity markets. This paper estimates the potential benefit to the EU of coupling interconnectors to increase the efficiency of trading day-ahead, intra-day and sharing balancing services efficiently across borders. Further gains are possible by eliminating unscheduled flows and avoiding the curtailment of renewables with better market design. In the short run the gains could be as high as €3.3 billion/yr, more than 100% of the current gains from trade. About one-third of this total comes from day-ahead coupling and another third from shared balancing.

Keywords: electricity market coupling; interconnectors; balancing; benefits (search for similar items in EconPapers)
JEL-codes: D61 F15 L51 L94 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-reg
Date: 2015-04-21
Note: dmgn
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http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1509.pdf

Related works:
Journal Article: The benefits of integrating European electricity markets (2016) Downloads
Working Paper: The benefits of integrating European electricity markets (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:1509

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