14th Mediterranean Conference on Power Generation, Transmission, Distribution and Energy Conversion - MED POWER 2024, Athens (Greece). 03-06 November 2024
Summary:
The Iberian electricity markets use a dedicated congestion management market to address network constraint violations arising from zonal day-ahead market dispatches. This market operates in two phases: the first phase resolves local congestion through redispatch, while the second phase restores the balance between generation and demand. This study evaluates the effectiveness of this two-phase approach in the context of a rapidly evolving energy sector. We identify inefficiencies in the current two-phase DACM model and examine the performance of an alternative approach which involves addressing the imbalances after day-ahead congestion management in the balancing market. Using a nine-node system, we demonstrate that each model has its strengths and weaknesses, depending on predicted system conditions. Our findings suggest that a dynamic market model, which adapts based on real-time predictions, offers the greatest efficiency. This adaptive model effectively addresses the challenges posed by intraday trading and the availability of flexible resources, thereby enhancing overall market performance.
Spanish layman's summary:
Los mercados eléctricos ibéricos utilizan un enfoque de gestión de las congestiones en dos fases, a través del redespatcho para aliviar congestiones y el rebalance del sistema. Este estudio encuentra ineficiencias en el modelo actual y sugiere que un modelo dinámico y adaptativo en tiempo real para incrementar la ficiencia del mercado.
English layman's summary:
The Iberian electricity markets use a two-phase congestion management approach, through a redispatch to aliviate congestions and a system rebalancing. This study finds inefficiencies in the current model and suggests that a dynamic, real-time adaptive model offers greater market efficiency.
Keywords: Congestion Management, Spanish Electricity Markets, Redispatch, Balancing Markets, Zonal Market Design
Publication date: 2024-11-03.
Citation:
S. Bindu, J.P. Chaves, L. Olmos, T. Gómez, The need for system balance restoration after congestion management: an examination of Iberian congestion management markets, 14th Mediterranean Conference on Power Generation, Transmission, Distribution and Energy Conversion - MED POWER 2024, Athens (Greece). 03-06 November 2024.
