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A Double Pricing and Penalties “Separated” Imbalance Settlement Mechanism to Incentive Self Balancing of Market Parties

2024-06Conference object Open access
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dc.contributor.authorAlgarvio, Hugo
dc.contributor.authorCouto, António
dc.contributor.authorEstanqueiro, Ana
dc.date.accessioned2024-09-13T11:03:28Z
dc.date.available2024-09-13T11:03:28Z
dc.date.issued2024-06
dc.description.abstractABSTRACT: Increasing penetrations of variable renewable energy sources increase the usage and costs of reserves due to their stochastic nature. As Balance Responsible Parties all market participants pay the balancing costs of their imbalances according to the imbalance settlement mechanism of each market zone. The European balancing markets and the imbalance settlement mechanisms still have different rules across Europe, but normally, the prices of upward and downward regulation are higher and lower than spot prices, respectively, originating penalties. Against this background, this work presents an alternative “Separated” imbalance settlement mechanism that consists of unbalanced parties paying/receiving directly the costs/revenues of the balancing markets needed to balance them. In this mechanism, the net costs/revenues of Transmission System Operators with energy balancing mechanisms are zero. Furthermore, by separating the payment of penalties between unbalanced directions, this mechanism also incentive unbalanced parties to self-control their dispatch, mitigating part of their deviations. Two case studies have been presented to test the application of this mechanism in Portugal and Spain, comparing its outputs with those of the mechanisms in place in these countries during 2019. Outputs from the studies prove the benefit of using this mechanism to reduce penalties, mainly in the case of active market players that can partly control their dispatch.pt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.citationAlgarvio, H., Couto, A. & Estanqueiro, A. (2024) A Double Pricing and Penalties “Separated” Imbalance Settlement Mechanism to Incentive Self Balancing of Market Parties. In: 20th International Conference on the European Energy Market (EEM), Istanbul, Turkiye, 10-12 June, 2024. https://doi.org/10.1109/EEM60825.2024.10609005pt_PT
dc.identifier.doi10.1109/EEM60825.2024.10609005pt_PT
dc.identifier.isbn979-8-3503-8174-0
dc.identifier.urihttp://hdl.handle.net/10400.9/4350
dc.language.isoengpt_PT
dc.publisherIEEEpt_PT
dc.relationTools for the Design and modelling of new markets and negotiation mechanisms for a ~100% Renewable European Power Systems
dc.relation.publisherversionhttps://doi.org/10.1109/EEM60825.2024.10609005pt_PT
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/pt_PT
dc.subjectRenewable energy sourcespt_PT
dc.subjectHybrid systemspt_PT
dc.subjectPower generationpt_PT
dc.subjectEuropept_PT
dc.titleA Double Pricing and Penalties “Separated” Imbalance Settlement Mechanism to Incentive Self Balancing of Market Partiespt_PT
dc.typeconference object
dspace.entity.typePublication
oaire.awardTitleTools for the Design and modelling of new markets and negotiation mechanisms for a ~100% Renewable European Power Systems
oaire.awardURIinfo:eu-repo/grantAgreement/EC/H2020/864276/EU
oaire.citation.conferencePlaceIstanbul, Turkiyept_PT
oaire.citation.title20th International Conference on the European Energy Market (EEM)pt_PT
oaire.fundingStreamH2020
person.familyNameCouto
person.familyNameEstanqueiro
person.givenNameAntónio
person.givenNameAna
person.identifier.ciencia-idB01D-304F-6CD3
person.identifier.ciencia-id2619-80A1-A8AC
person.identifier.ciencia-id7F11-A24D-EE81
person.identifier.orcid0000-0002-4129-838X
person.identifier.orcid0000-0002-7368-8817
person.identifier.orcid0000-0002-0476-2526
person.identifier.ridJ-9752-2012
person.identifier.scopus-author-id19336967700
project.funder.identifierhttp://doi.org/10.13039/501100008530
project.funder.nameEuropean Commission
rcaap.rightsopenAccesspt_PT
rcaap.typeconferenceObjectpt_PT
relation.isAuthorOfPublication63bffd90-c233-4ffe-b222-d5b12e31ae33
relation.isAuthorOfPublicationa0c5b011-98c5-49d3-9ac6-ddfb6027f500
relation.isAuthorOfPublication20aa31b3-fa3c-42b7-82a4-e6b91c017f9c
relation.isAuthorOfPublication.latestForDiscovery63bffd90-c233-4ffe-b222-d5b12e31ae33
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