19th International Conference on the European Energy Market - EEM23, Lappeenranta (Finland). 06-08 June 2023
Summary:
When markets trade compatible products, the overall procurement efficiency can be increased by forwarding the unused bids from one market to another by a predefined market operator. This process, known as bid forwarding, is a promising way to coordinate sequential markets, especially new local markets with the existing wholesale markets. This paper describes the concept of bid forwarding and its significance in the future European electricity markets. We examine the market design conditions that enable the bid forwarding process. Using the identified conditions, we analyze the possibility of bid forwarding in two real cases: 1) between the Spanish local DSO congestion management market from the OneNet project and Spanish intraday markets, and 2) between the Finnish local TSO-DSO congestion management market from the OneNet project and the manual frequency restoration reserve (mFRR) market. We discuss the main policy implications and good market design practices that can encourage the adoption of bid forwarding in upcoming markets.
Spanish layman's summary:
Bid forwarding’ es una forma de conectar dos o más mercados que comercian con productos compatibles, especialmente entre mercados locales y mercados mayoristas. En este artículo, definimos los conceptos relacionados con ‘bid forwarding’ y examinamos el potencial para su implementación en dos casos reales.
English layman's summary:
Bid forwarding is a way to connect two or more markets that trade compatible products, especially between local markets and wholesale markets. In this paper, we define the concepts related to bid forwarding and examine the potential for implementation in two real cases.
Keywords: Bid forwarding, Distributed resources, Electricity markets, Local flexibility markets, Value-stacking.
DOI: 
https://doi.org/10.1109/EEM58374.2023.10161855
Published in IEEE EEM 2023, pp: 1-6, ISBN: 979-8-3503-2452-5
Publication date: 2023-07-03.
Citation:
S. Bindu, M. Troncia, J.P. Chaves, A. Sanjab, Bid forwarding as a way to connect sequential markets: opportunities and barriers, 19th International Conference on the European Energy Market - EEM23, Lappeenranta (Finland). 06-08 June 2023. In: IEEE EEM 2023: Conference proceedings, ISBN: 979-8-3503-2452-5
