Direct current market coupling: Sweden — Poland — Lithuania — Sweden

Abstract

According to the European Energy policy, highlighting the strategy for development of the interconnection of European countries, this paper presents comparative analysis of the operation of energy markets in southern part of Baltic Ring, within DC loop Sweden — Poland — Lithuania — Sweden. Power systems of abovementioned countries are interconnected by the market coupling mechanism. Analysis is based on two periods of 11 months. The second period contains data from 9.12.2015 to 30.11.2016 while three interconnectors were in operation. However, the first period is in reference to the analysis purposes and it consists of data from 1.01.2015 to 8.12.2015 with only one connection — SwePol link. Evaluation of all aspects observed during those periods provides background to asses and determine the key factors affecting condition of the market in Baltic Ring. According to the results, market coupling mechanism is operating well, however not always power flows are driven by the price variations. Poland and Lithuania benefit from lower prices and Sweden improves usage of the most competitive generation resources.