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effects of flow-based market coupling for the cwe region

Effects of Flow-based Market Coupling for the CWE region
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De Jong, H.M.; R.A. Hakvoort and Manoj Sharma: Effects of Flow-based Market Coupling for the CWE region, pp. 1-9. In: Proceedings of the 4th European Congress Economics and Management of Energy in Industry (ECEMEI2007) Nov. 27th-30th (2007). At: Porto Portugal. S.l.: CENERTEC, 2007. Eds.: CENERTEC. ISBN: 978-972-99309-2-8. International Proceeding (refereed)

Hanneke de Jong

This paper examines the effects on price levels and welfare in the Central West European countries (Germany, France, The Netherlands, Belgium and Luxemburg) of the transition from present capacity allocation methods in the Central West European (CWE) region to a Flow-based Market Coupling (FBMC) allocation method. Quantitative analyses are made by means of a technical load-flow model combined with an economic model to solve the FBMC-optimization problem. Amongst other things we have calculated the expected difference, in terms of regional (and national) welfare, between applying the present allocation method and a flow-based market coupling allocation method. Based on proxies for the demand and supply curves for each country involved, price changes and welfare changes were calculated when applying the different allocation models. The price and welfare changes were calculated against a base case with market clearing without international exchanges.

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