Market-based Redispatch May Result in Inefficient Dispatch

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Details zur Publikation

Autor(en): Grimm V, Martin A, Sölch C, Weibelzahl M, Zöttl G
Jahr der Veröffentlichung: 2018
Sprache: Englisch


Abstract

In this paper we analyze a uniform price electricity spot market that is
followed by redispatch in the case of network congestion. We assume
that the transmission system operator is incentivized to minimize
redispatch cost and compare a cost-based redispatch to a market-based
redispatch mechanism. For networks with at least three nodes we show
that in contrast to cost-based redispatch, in the case of market-based
redispatch the cost-minimizing allocation may not be short-run
efficient. As we demonstrate, the possibility of the transmission system
operator to reduce market-based redispatch cost at the expense of a
reduced welfare may be driven by the electricity supply side or the
electricity demand side. Based on these results, we propose a new hybrid
approach where the transmission system operator implements the
efficient (instead of the cost minimizing) dispatch and uses
market-based redispatch compensations.


FAU-Autoren / FAU-Herausgeber

Grimm, Veronika Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Martin, Alexander Prof. Dr.
Lehrstuhl für Wirtschaftsmathematik
Sölch, Christian
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Weibelzahl, Martin
Lehrstuhl für Wirtschaftsmathematik
Zöttl, Gregor Prof. Dr.
Professur für Volkswirtschaftslehre


Zusätzliche Organisationseinheit(en)
Energie-Campus Nürnberg (EnCN)


Zitierweisen

APA:
Grimm, V., Martin, A., Sölch, C., Weibelzahl, M., & Zöttl, G. (2018). Market-based Redispatch May Result in Inefficient Dispatch.

MLA:
Grimm, Veronika, et al. Market-based Redispatch May Result in Inefficient Dispatch. 2018.

BibTeX: 

Zuletzt aktualisiert 2018-10-09 um 12:38