Study on the effects of ACER bidding zone configurations on socio-economic welfare and CO2 emissions
report
The European electricity wholesale market is a zonal market that allows for trading across Europe given limited interconnection capacities between bidding zones. Countries generally consist of one or more bidding zones, which is defined as the area in which unlimited transport capacity for the market is assumed to be available ("copper-plate" assumption) - As a consequence, there is only one wholesale electricity market price for each bidding zone (BZ). Different BZs show a different wholesale electricity price at times of congestion on one or more interconnectors between BZs. Introducing more BZs is a potential policy option to use the available technical interconnection capacity more efficiently; it allows electricity market prices to align better with physical reality and to provide better price signals to the market for both new investment (e.g. location choice) and operational decisions. This helps to achieve higher market efficiency and further decarbonization of the energy system, while ensuring system security
Topics
TNO Identifier
1000989
Publisher
TNO
Collation
141 p.
Place of publication
Petten