The impact of Flow-Based Market Coupling on the Nordic region
Bø, Andreas Hovde; Kallset, Vegard Viken; Oleinikova, Irina; Farahmand, Hossein; Refsnæs, Karl Ludvig
Peer reviewed, Journal article
Accepted version
Åpne
Permanent lenke
https://hdl.handle.net/11250/2773900Utgivelsesdato
2020Metadata
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- Institutt for elkraftteknikk [2468]
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Originalversjon
10.1109/EEM49802.2020.9221952Sammendrag
The primary objective of capacity calculation is to reflect physical transmission limits in the power grid into limits on commercial trades at the electricity markets. The Nordic capacity calculation methodology is currently based on a Coordinated Net Transmission Capacity (CNTC) approach. This paper investigates a structural change of the power supply, in conjunction with the introduction of Flow-Based Market Coupling (FBMC) in the Nordic region. Overall, the results indicate that total welfare increases and differences between average prices are smaller when using FBMC instead of CNTC, especially on a power system with increased wind power capacity.