European Electricity Market Design Still Challenged by
Network Access and Congestion Management
At the end of 2014, electricity is supposed to flow freely within and among the 8 regional markets of the European Union. Yet, this deadline might be delayed due to PX inability to treat the cross border (CB) transmission congestion.
Day - ahead market coupling project with its implicit capacity auctioning is obviously a step forward, yet as shown in the following two papers:
CB congestion management by a market operator instead of system operator as typically happens within the borders does not allow the network service to react appropriately in the support of electricity trade.
The target design of an EU single electricity market may be based on full 'entry - exit' network access model, with no commercial grid CBs. This model would overcome inconsistency in both the national - cross border and planned - operational network access. PX would not substitute the TSOs in the operation of power interconnectors, while TSO would be credited with the right responsibility and proper assign of the resources to invest in the network.
Keywords: European electricity market; market design; nodal model; network access; power interconnector; transmission capacity; congestion management; power exchange; transmission system operator; 'entry - exit' model.