Providing solutions for cross-border electricity trading

18 Jan

Providing solutions for cross-border electricity trading 

The European Union Target Model’s main objective is to integrate European electricity markets, leading to a single energy market and guaranteeing an instantaneous balance between electricity generation and demand. According to ENTSO-E, within each market zone, electricity can be traded freely without taking into consideration network limitations. In contrast, for cross-border trading, the exchanges with other market areas are taken into account. Cross-border trade poses a further burden on the interconnection lines, resulting in increased network congestion, which in turn restricts electricity trading. Thus, calculating the available capacity for trade has a significant ramification on the market.

As part of the CROSSBOW Regional Operation Centre – Balancing Cockpit (ROC-BC) product, ADMIE/IPTO partners have developed an approach that includes two mechanisms for cross-border electricity trading, namely as Available Transfer Capacity (ATC) and Flow-Based (FB).

Since CROSSBOW’s focus is the SEE region the analysis was conducted for five countries (Greece, North Macedonia, Bulgaria, Serbia, and Romania) scenario. The purpose of CROSSBOW tests was to perform, compare and evaluate the effectiveness of each method for the SEE region, while the main findings are the maximization of social welfare, better cross-border trading opportunities, and price convergence mainly via the FB market coupling.

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