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.

Sprache
Englisch

Erschienen in
Series: DIW Discussion Papers ; No. 1418

Klassifikation
Wirtschaft
Industrial Policy; Sectoral Planning Methods
Electric Utilities
Energy: General
Market Design
Thema
Electricity market
Financial transmission right
Congestion management
Market design
Germany

Ereignis
Geistige Schöpfung
(wer)
Kunz, Friedrich
Neuhoff, Karsten
Rosellón, Juan
Ereignis
Veröffentlichung
(wer)
Deutsches Institut für Wirtschaftsforschung (DIW)
(wo)
Berlin
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kunz, Friedrich
  • Neuhoff, Karsten
  • Rosellón, Juan
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Entstanden

  • 2014

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