Simulation of Euphemia’s Market Coupling using a flow-based model for the Region Italy North

Abstract

The flow-based methodology is a relatively new approach for the allocation of cross-border exchanges between control areas, alternative to the classical so-called NTC based methodology. At a glance, the flow-based methodology aims at determining a multi-dimensional domain where the inter-TSO energy trading is possible, taking into account the security of the transmission grid, by means of a sensitivity approach on the network elements. The flow-based methodology is particularly indicated for highly meshed power systems, where the strong interdependence among several interconnected grids, is a hindrance for the calculation of cross-border bilateral capacities. Indeed, the flow-based methodology better fits the meshed systems, as it guarantees the respecting of security constraints, in the different control area, in a simultaneous way. This paper reports the main outcomes of the analysis run on the Northern Italian interconnection applying a flow-based methodology for the assessment of cross-border power exchanges.