Integrated market and network analysisCopyright: IAEW
European power market design and network congestion management measures are closely linked within the different process stages (from network expansion to day-ahead spot market to physical realization). To investigate their interdependencies especially due to increasing demand for redispatch, IAEW uses an integrated market and network analysis.
The hot topic of the alternative power market design Nodal Pricing can be addressed with a European nodal pricing simulation. It determines the cost-optimized European unit commitment taking into account physical restrictions within the transmission grid according to (n-1) criterion so that further congestion management as redispatch is no longer necessary. Against the background of the Clean Energy Package and the request for a regular bidding zone review, new techno-economically efficient bidding zone configuration can also be determined based on resulting nodal prices. In combination with the simulation available at IAEW for determining the unit commitment and grid operation, new configurations can then be analysed both on the market and grid aspect.