Impact of Bidding Zone Configuration on the French Electricity Network
Abstract: At the beginning, the rst operation concern of electricity transmission networks is to ensure the security of power system. These interconnections are also used for the purpose of exchanging electricity from one country to another. They have a central role to achieve the integrated European electricity market by allowing electricity supplier to sell energy to a customer in another EU country. This enables market players to trade electricity depending on opportunities and prices in various bidding areas in Europe. The interconnections contribute therefore to the eectiveness of the European electricity market. The volume of trade is however limited by the physical limitations of the transmission lines, which are determined by the TSOs through cross border capacity calculations and assigned to the actors based on dierent market mechanisms (e.g. capacity allocation). The fast development of renewable energy sources has increased the imbalances between supply and demand. This further increases constraints on transmission lines, including the interconnections between neighboring countries. In order to manage this problematic situation, the modication of the bidding areas conguration is often considered as a solution. Dierent studies developed methods based on nodes aggregation or minimization of re-dispatching costs to dene the price areas. However, the impact of this kind of measure on the overall system is not well studied. This master thesis work presents a general methodology to study the impact of a new bidding zone conguration in the French electrical network from a market point of view. In order to dene a relevant bidding zone conguration in the system, physical ows on the lines are determined and the two ends of binding links are located in two dierent bidding zones. Then, electricity price, social welfare evolution and modication of the ows due to the new generation pattern are presented in order to evaluate and analyze the impact of the new bidding zone conguration on the market. The modelling limits are analyzed in order to evaluate the proposed approach.
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