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Insights on Germany’s future congestion management from a multi-model approach

 
: Hladik, Dirk; Fraunholz, Christoph; Kühnbach, Matthias; Manz, Pia; Kunze, Robert

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Fulltext urn:nbn:de:0011-n-5999155 (2.8 MByte PDF)
MD5 Fingerprint: e08ba1c4f243ae8e7aa7b0e4eea5f09b
Created on: 8.9.2020


Energies 13 (2020), No.16, Article 4176, 26 pp.
ISSN: 1996-1073
English
Journal Article, Electronic Publication
Fraunhofer ISI ()
Congestion management; Market splitting; Capacity mechanism; Model coupling; Demand-side modeling; Agent-based modeling; Optimal power flow

Abstract
In Germany, the political decision to phase out nuclear and coal-fired power as well as delays in the planned grid extension are expected to intensify the current issue of high grid congestion volumes. In this article, we investigate two instruments which may help to cope with these challenges: market splitting and the introduction of a capacity mechanism. For this purpose, we carry out a comprehensive system analysis by jointly applying the demand side models FORECAST and eLOAD, the electricity market model PowerACE and the optimal power flow model ELMOD. While a German market splitting has a positive short-term impact on the congestion volumes, we find the optimal zonal delimination determined for 2020 to become outdated by 2035 resulting in new grid bottlenecks. Yet, readjusting the zonal configuration would lower the ability of the market split to provide regional investment incentives. Introducing a capacity mechanism with a congestion indicator allows allocating new power plants in regions with higher electricity demand. Consequently, we find the required congestion management to be substantially reduced in this setting. However, given the large amount of design parameters, any capacity mechanism needs to be carefully planned before its introduction to avoid new inefficiences on the market side.

: http://publica.fraunhofer.de/documents/N-599915.html