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Coordinating Cross-Country Congestion Management: Evidence from Central Europe

We employ a detailed two-stage model to simulate the operation of the Central Eastern European electricity market and network. Implementing different cases of coordination in congestion management between national transmission system operators, numerical results show the beneficial impact of closer cooperation. Specific steps comprise the sharing of network and dispatch information, cross-border counter-trading, and multilateral redispatch in a flow-based congestion management framework. Efficiency gains are accompanied by distributional effects. Closer economic cooperation becomes especially relevant against the background of changing spatial generation patterns, deeper international integration of national systems, and spillovers of national developments to adjacent systems.

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Keywords: Electricity, Congestion management, Network modeling, Europe

DOI: https://doi.org/10.5547/01956574.37.SI3.fkun

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Published in Volume 37, Sustainable Infrastructure Development and Cross-Border Coordination of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.