German Electricity Reserve Markets

Riedel, Stefan and Weigt, Hannes (2007): German Electricity Reserve Markets.

Abstract

This paper analyzes the functioning of the markets for electricity reserves in Germany. We provide an overview of the technical requirements and the market design and structure of the primary, secondary and tertiary reserve markets, and then look at developments following the introduction of market-based reserve management. We assess the dependence of the minute reserve market by conducting a correlation analysis. The results indicate an increasing correlation among Germany’s four local markets as well as a relationship to wholesale market outcomes. We test the competitiveness of the reserve market by estimating the average income a peak load supplier can obtain by bidding on the reserve market.

• Item Type: MPRA Paper
• Language: English
• Keywords: electricity; Germany; reserve market
• Subjects: L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities

References

[Bower and Bunn 2000] Bower, John ; Bunn, Derek: A Model-Based Comparison of Pool and Bilateral Market Mechanisms for Electricity Trading. In: The Energy Journal 21 (2000), July, No. 3, S. 1–29

[Boyce 2001] Boyce, Meherwan P.: Gas Turbine Engineering Handbook: Incompressible Flow Turbomachines. 2nd Edition. Houston/Texas : Gulf Professional Publishing, 2001

[Chao and Wilson 2001] Chao, Hung-po ; Wilson, Robert: Multi-Dimensional Procurement Auctions for Power Reserves: Robust Incentive-Compatible Scoring and Settlement Rules. Version: March 2001. http://faculty-gsb.stanford.edu/wilson/archive/pdf/ChaoWilson6.pdf,

[Cramton and Stoft 2006] Cramton, Peter ; Stoft, Steven: Uniform-Price Auctions in Electricity Markets. Version: March 2006. http://stoft.com/metaPage/lib/cramton-stoft-2006-03-clearing- price-markets.pdf, Last checked: 15 February 2007

[Ensslin 2006] Ensslin, Cornel: The Influence of Modelling Accuracy on the Determination of Wind Power Capacity Effects and Balancing Needs, Kassel University, Diss., 2006 25

[Kahn et al. 2001] Kahn, Alfred E. ; Cramton, Peter C. ; Porter, Robert H. ; Tabors, Richard D.: Uniform Pricing or Pay-as-Bid Pricing: A Dilemma for California and Beyond. In: The Electricity Journal 14 (2001), July, No. 6, S. 70–79

[Schröter 2004] Schröter, Jochen: Auswirkungen des Europäischen Emissionshandelssystems auf den Kraftwerkseinsatz in Deutschland, Berlin University of Technology, Institute of Power Engineering, Diplomarbeit, February 2004. http://www.basis.gruene.de/bag.energie/papiere/eeg_diplarbeit_schroeter_lang.pdf

[Schwab 2006] Schwab, Adolf J.: Elektroenergie – Erzeugung, Transport, Übertragung und Verteilung elektrischer Energie. Berlin, Heidelberg : Springer-Verlag, 2006

[Stoft 2002] Stoft, Steven ; The Institute of Electrical and Electronics Engineers (Hrsg.): Power Systems Economics: Designing Markets for Electricity. New York : Wiley & Sons, 2002

[Swider 2006] Swider, Derk J.: Handel an Regelenergie- und Spotmärkten – Methoden zur Entscheidungsunterstützung für Netz- und Kraftwerksbetreiber. Wiesbaden, IER Stuttgart, Abteilung Energieanwendung und Energiemanagement, Diss., April 2006

[Swider 2005] Swider, Derk J.: Regelenergiemarkt Deutschland – Kosteneffizienz und Perspektiven einer Weiterentwicklung. In: EUROFORUM-Konferenz: Regel- und Ausgleichsenergie. Cologne, August 2005

[Swider and Ellersdorfer 2006] Swider, Derk J. ; Ellersdorfer, Ingo: An Efficient Scoring-Rule to Minimize Strategic Incentives in Multi-Part Procurement Auctions for Power Systems Reserve. Version: June 2006. http://www.ier.uni-stuttgart.de/forschung/projektwebsites/electra/de/PDF- Dateien/Download_Vortrag_-_IAEE2006.pdf, Last checked: 15 February 2007

[Swider and Weber 2003] Swider, Derk J. ; Weber, Christoph: Ausgestaltung des deutschen Regelenergiemarktes. In: Energiewirtschaftliche Tagesfragen 53 (2003), No. 7, S. 448–453