Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74381
Authors: 
Burstedde, Barbara
Year of Publication: 
2012
Series/Report no.: 
EWI Working Paper 12/09
Abstract: 
Congestion management schemes have taken a prominent place in current electricity market design discussions. In this paper, the implications of establishing zonal pricing in Europe are analyzed with regard to potential zonal delimitations and associated effects on total system costs. Thereby, a nodal model sets the benchmark for efficiency and provides high-resolution input data for a cluster analysis based on Ward’s minimum variance method. The proposed zonal configurations are tested for sensitivity to the number of zones and structural changes in the electricity market. Furthermore, dispatch and redispatch costs are computed to assess the costs of electricity generation and transmission. The results highlight that suitable bidding zones are not bound to national borders and that losses in static efficiency resulting from the aggregation of nodes into zones are relatively small.
Subjects: 
Cluster Analysis
Electricity Market Modeling
Nodal Pricing
Redispatch
Zonal Pricing
JEL: 
C38
C63
L51
Q41
Document Type: 
Working Paper

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