Congestion Management in Electricity Networks: Nodal, Zonal and Discriminatory Pricing

Arbeitspapier

Wholesale electricity markets use different market designs to handle congestion in the transmission network. We compare nodal, zonal and discriminatory pricing in general networks with transmission constraints and loop flows. We conclude that in large games with many producers who are allowed to participate in the real-time market the three market designs result in the same efficient dispatch. However, zonal pricing with counter-trading results in additional payments to producers in export-constrained nodes.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 915

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Auctions ; Allocative Efficiency; Cost-Benefit Analysis ; Oligopoly and Other Imperfect Markets ; Electric Utilities
• Subject: Congestion management ; Wholesale electricity market ; Transmission network ; Nodal pricing ; Zonal pricing with countertrading ; Discriminatory pricing ; Large game ; Elektrizitätsversorgung ; Bottleneck ; Betriebliche Preispolitik ; Spieltheorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Holmberg, Pär ; Lazarczyk, Ewa
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/81489
• Last update: 10.03.2025, 11:42 AM CET