Marcelo Saguan

Assessing available transfer capacity on a realistic European Network: Impact of assumptions on wind power generation

This paper aims at assessing the impact of massive wind power penetration on the calculation of ATC. Calculations are made for the ATC between France and Belgium and are realized on a realistic European Electricity Network. We find that the German wind power production make this ATC vary depending on the total wind power production and its geographical distribution in Germany. Wind power production and the nodes involved in cross-border exchange must then be forecast precisely so that the cross-border exchange can be maximal without breaching network security.

Assessment of the implementation of cross-border balancing trade between Belgium and the Netherlands

Balancing services in Belgium and the Netherlands are procured and activated locally so far. However, the implementation of cross-border balancing trade between both countries is expected to entail significant benefits. The assessment in this paper illustrates that the implementation of a cross-border balancing market between Belgium and the Netherlands is a lucrative and achievable goal that does not entail unrealistic or overly expensive preconditions. Significant cost reductions could have occurred with cross-border balancing during the year 2008-due to netting and cross-border procurement of relatively cheaper services. Restrictions imposed on cross-border balancing due to cross-border capacity constraints would have been rather small.

Offshore Grids: Towards a least regret EU policy

Each semester the THINK project publishes two research reports based on topics proposed by the European Commission

Regimes for granting the right to use hydropower in Europe

Over the last decade, the European Commission has launched several procedures concerning the compatibility of hydropower right granting with European laws and regulations in several countries (e.g. France, Spain, Italy, Portugal, etc.). Meanwhile, other hydropower regimes (e.g. in Austria or Sweden) are not subject of such investigations despite not being grounded on competitive process. This difference of treatment raises questions about the drivers of the European Commission actions. Understanding and grabbing the main differences between the national hydropower regimes is then of particular interest. This report aims at providing a benchmarking of hydropower concession regimes in Europe, describing hydropower regimes in 14 European countries (Austria, Bulgaria, Finland, France, Germany, Great-Britain, Greece, Italy, Norway, Poland, Portugal, Spain, Sweden and Switzerland) and regions when appropriate (e.g. cantons in Switzerland or Lands/States in Germany). This report describes and scrutinizes hydropower regimes through a unified analysis framework to ensure their comparison on an equal basis. This framework is structured around 4 blocks: 1. The institutional framework of hydropower regimes (e.g. type of rights to use hydropower, authorities granting rights to use hydropower, etc.) 2. The framework for granting right to use hydropower (duration of rights and procedure, competitive process and existence of a possible EC infringement procedure). 3. The obligations of the hydropower operator (environmental and investment obligations and royalties). 4. Small hydro characterisation and support schemes. ISBN:978-92-9084-353-5 doi:10.2870/121640

Implementation of cross-border balancing in Europe

Following initiatives on the day-ahead and intra-day stage, a cross-border approach towards real-time balancing constitutes a logical next step in the process towards an Internal Electricity Market (IEM) in Europe. Determining the real-time price for energy on which market parties need to be able to rely for last resort supply, well designed cross-border balancing markets are a key element in an efficiently functioning IEM. For the moment, balancing market designs significantly differ between countries and a coordinated approach for cross-border exchange of balancing services is lacking. This paper identifies possible distortions following an insufficient harmonization of national designs and derives both minimal prerequisites and long term recommendations for the implementation of cross-border balancing in Europe.

Considering power plants mothballing in long-term simulation models for liberalized power markets

This paper proposes a methodology for modeling mothballing decisions in order to better study the different strategies adopted by power plants owners and their impact on power systems (in particular generation adequacy). A system dynamic approach is adopted to build a model which represents investment, mothballing and shutdown decisions in an energy-only market. The results obtained with the proposed modelling methodology highlight the importance of considering mothballing in long term simulation models of power markets. They show how models which neglect mothballing decisions might overestimate or underestimated the level of available capacity, therefore leading to inappropriate policy choices. The proposed methodology could better inform policymakers on their decisions.

Review of models for power exchanges with non-convex technical constraints for investment decisions

To study investment incentives sent by energy prices in European power exchanges in the context of high renewable injections, it is necessary to model precisely the functioning of the short-term market. In particular, the possible impacts of non-convex technical constraints on prices should be considered as they may deeply impact investment decisions. In this article, four different models are compared based on two criteria, the complexity and the relevance to represent the functioning of a power exchange when technical constraints are considered. A trade-off between these two criteria is needed and no model seems to meet successfully both. As a result, an intermediate model like a convex Unit Commitment model or a decentralized model with simple bids appears to be a wise solution to study the investment decisions.

For a harmonisation of hydropower regimes in European Single Market

• Over the last decade, the European Commission has opened several infringement procedures to prompt the implementation of competitive processes, but they have not been undertaken with a “Europeanised” approach, which would ensure a similarity of efforts throughout Member States to open competition to access hydropower. The current diversity amongst Member States creates obstacles for the countries that have engaged in a competitive renewal process, as they are faced with the lack of a level playing field and a coherent reference framework.