Arbeitspapier
FTR allocations to ease transition to nodal pricing: An application to the German power system
A shift from zonal pricing to smaller zones and nodal pricing improves efficiency and security of system operation. Resulting price changes do however also shift profits and surplus between and across generation and load. As individual actorscan lose, they might oppose any reform. We explore how free allocation of financial transmission rights to generation and load can be used to mitigate the distributional impact. In a three node network we explore the fundamental effects with regard to reference node/hub for FTRs, the share of FTRs to be allocated for free and the metric to determine the proportion of rights allocated to different generation and load. We test the results in a more realistic setting based on hourly modelling of the German power system at nodal representation.
- Language
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Englisch
- Bibliographic citation
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Series: DIW Discussion Papers ; No. 1418
- Classification
-
Wirtschaft
Industrial Policy; Sectoral Planning Methods
Electric Utilities
Energy: General
Market Design
- Subject
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Electricity market
Financial transmission right
Congestion management
Market design
Germany
- Event
-
Geistige Schöpfung
- (who)
-
Kunz, Friedrich
Neuhoff, Karsten
Rosellón, Juan
- Event
-
Veröffentlichung
- (who)
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Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
-
Berlin
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kunz, Friedrich
- Neuhoff, Karsten
- Rosellón, Juan
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2014
Other Objects (12)
FTR allocations to ease transition to nodal pricing: An application to the German power system
FTR allocations to ease transition to nodal pricing : An application to the German power system
FTR allocations to ease transition to nodal pricing : An application to the German power system
FTR allocations to ease transition to nodal pricing: An application to the German power system
Technical Aspects of Nodal Pricing
Opening the electricity market to renewable energy: Making better use of the grid
"Investment in building energy efficiency: Climate fund to increase rate of refurbishment": Six questions to Karsten Neuhoff
Mid-term contracting in Electricity Markets: What to consider in Market Design?
Reacting to changing paradigms: How and why to reform electricity markets
"Direct marketing of renewable energy creates new risks for investors": Eight questions to Karsten Neuhoff
"Combining dynamic allocation and inclusion of consumption into the EU ETS would be beneficial": Six questions to Karsten Neuhoff
Die Bundesregierung sollte weitere Antworten auf die Energiekrise liefern
FTR allocations to ease transition to nodal pricing: An application to the German power system
FTR allocations to ease transition to nodal pricing : An application to the German power system
FTR allocations to ease transition to nodal pricing : An application to the German power system
FTR allocations to ease transition to nodal pricing: An application to the German power system
Technical Aspects of Nodal Pricing
Opening the electricity market to renewable energy: Making better use of the grid
"Investment in building energy efficiency: Climate fund to increase rate of refurbishment": Six questions to Karsten Neuhoff
Mid-term contracting in Electricity Markets: What to consider in Market Design?
Reacting to changing paradigms: How and why to reform electricity markets
"Direct marketing of renewable energy creates new risks for investors": Eight questions to Karsten Neuhoff
"Combining dynamic allocation and inclusion of consumption into the EU ETS would be beneficial": Six questions to Karsten Neuhoff
Die Bundesregierung sollte weitere Antworten auf die Energiekrise liefern
FTR allocations to ease transition to nodal pricing: An application to the German power system
FTR allocations to ease transition to nodal pricing : An application to the German power system
FTR allocations to ease transition to nodal pricing : An application to the German power system
FTR allocations to ease transition to nodal pricing: An application to the German power system
Technical Aspects of Nodal Pricing
Opening the electricity market to renewable energy: Making better use of the grid
"Investment in building energy efficiency: Climate fund to increase rate of refurbishment": Six questions to Karsten Neuhoff
Mid-term contracting in Electricity Markets: What to consider in Market Design?
Reacting to changing paradigms: How and why to reform electricity markets
"Direct marketing of renewable energy creates new risks for investors": Eight questions to Karsten Neuhoff
"Combining dynamic allocation and inclusion of consumption into the EU ETS would be beneficial": Six questions to Karsten Neuhoff