Pan-European Electricity Market Simulation Considering the European Power Network Capacities

Abstract

Worldwide electricity markets have been evolving into regional and even continental scales. The aim at an efficient use of renewable based generation in places where it exceeds the local needs is one of the main reasons. A reference case of this evolution is the European electricity market, where countries are connected, and several regional markets were created, each one grouping several countries, and supporting transactions of huge amounts of electrical energy. However, physical constraints, such as the grid limited capacity, are major setbacks, which make the full European market unification a more distant goal. This paper presents a study that aims at analyzing the capability of the existing European transmission network in accommodating a full unification of the European electricity markets. This study considers the real European transmission network capacities, supporting a unified Pan-European electricity market scenario, which is simulated using the Multi-Agent System for Competitive Electricity Markets.