1. The electricity balancing market: Exploring the design challenge.
- Author
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van der Veen, Reinier A.C. and Hakvoort, Rudi A.
- Subjects
- *
ELECTRIC power consumption , *ENERGY policy , *TAX incentives , *CONJOINT analysis , *MARKET design & structure (Economics) - Abstract
In the unbundled national electricity markets in Europe, the balancing market is the institutional arrangement that deals with the balancing of electricity demand and supply. This paper presents a framework for policy makers that identifies the relevant design variables and performance criteria that play a role in the design and analysis of European balancing markets. We outline the full extent of the design challenge through a discussion of trade-offs among performance criteria, uncertain effects of design variables, and the many inter-linkages between the balancing market and the electricity market at large. Policy makers can address the balancing market design challenge by adopting a structured approach in which design variables, performance criteria, market conditions, system developments, and resultant market incentives are explicitly considered. [ABSTRACT FROM AUTHOR]
- Published
- 2016
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