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Redispatch and balancing: Same but different. Links, conflicts and solutions

: Poplavskaya, Ksenia; Joos, Marine; Krakowski, Vincent; Knorr, Kaspar; Vries, Laurens de

Preprint urn:nbn:de:0011-n-6186101 (269 KByte PDF)
MD5 Fingerprint: 56dbcbe42f649d449032a221a19d1ad1
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Erstellt am: 5.1.2021

Institute of Electrical and Electronics Engineers -IEEE-; Institute of Electrical and Electronics Engineers -IEEE-, Power & Energy Society -PES-:
17th International Conference on the European Energy Market, EEM 2020 : 16-18 September 2019, Stockholm, Sweden, Online conference
Piscataway, NJ: IEEE, 2020
ISBN: 978-1-7281-6919-4
ISBN: 978-1-7281-6920-0
Paper 1130, 7 S.
International Conference on the European Energy Market (EEM) <17, 2020, Online>
Bundesministerium fur Wirtschaft und Energie BMWi (Deutschland)
ERA-Net; 03EI6013; REgions
Ancillary services of regions with high shares of renewable energies for regional and European markets
Konferenzbeitrag, Elektronische Publikation
Fraunhofer IEE ()
balancing; Redispatch; ancillary services; incentives; market design

The authors provide a critical analysis of existing approaches to balancing and congestion management (specifically redispatch) and their effects on the incentives for service providers. This issue is particularly important in the view of the harmonization of ancillary service procurement in Europe, introduction of cross-border balancing markets and cooperation on congestion management. There is no universally established procurement mechanism for either of the two services. Based on case studies of Germany, France and the Netherlands and the introduction of an EU balancing energy platforms, we derive three stylized interaction models and discuss their comparative conflicts, risks and performance. We argue that market-based redispatch procurement can both increase allocative efficiency and resource availability as long as structural congestion is addressed first. Timeframe of procurement and remuneration mechanisms are other crucial factors affecting market efficiency. Combining redispatch with wholesale markets might yield a further improvement while minimizing conflicts between redispatch and balancing.