Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/224125 
Year of Publication: 
2019
Series/Report no.: 
Bremen Energy Working Papers No. 31
Publisher: 
Jacobs University Bremen, Bremen Energy Research (BER), Bremen
Abstract: 
The increasing share of renewables in the electricity system results in congestion on all network levels. To address this congestion, the EU Commission proposed that distribution network operators become responsible for local congestion management. Within this paper we analyze the institutional implications of the introduction of local congestion markets and identify three discrimination concerns related to the DSO's role on these markets. We will argue that the standard governance models (legal unbundling, ownership unbundling, IDSO) are not adequate here. Instead, we discuss two novel approaches: The introduction of Independent Distribution Operators (IDO) or alternatively, a Common Flexibility Platform (CFP). Since the CFP does not require stronger unbundling of DSOs, we recommend to investigate this solution further.
Subjects: 
local congestion market
congestion management
regulation
unbundling
discrimination
JEL: 
D47
L52
L 94
L97
L98
Document Type: 
Working Paper

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