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1. The Effects of Transmission-Rights Pricing on Multi-Stage Electricity Markets

Author

de Saint-Lienard, Erwann de Belloy, Marecek, Jakub, and Kungurtsev, Vyacheslav

Subjects
Mathematics - Optimization and Control, Computer Science - Computer Science and Game Theory
Abstract

Cross-border transmission infrastructure is pivotal in balancing modern power systems, but requires fair allocation of cross-border transmission capacity, possibly via fair pricing thereof. This requirement can be implemented using multi-stage market mechanisms for Physical Transmission Rights (PTRs). We analyse the related dynamics, and show prisoner's dilemma arises. Understanding these dynamics enables the development of novel market-settlement mechanisms to enhance market efficiency and incentivize renewable energy use.

Published
2024

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