Market Design for Cross-Border Co-Optimised Energy-Reserve Allocation

Abstract

To achieve its energy goals, the European Union (EU) needs to establish a geographically large market by initially improving its cross-border electricity interconnections. The Hungarian project focuses on this topic. A geographically large market, based on imports and exports of electricity, could increase the level of competition, boost the EU’s security of electricity supply through creating alternative routes to the customers and integrate more renewables into energy markets. Electricity should, as far as possible, flow between Member States as easily as it currently flows within Member States, in order to increase sustainability potential and real competition, as well as to drive economic efficiency of the energy system. To this end, Facilitating Regional CROSS-border Electricity Transmission (FARCROSS) aims to address this challenge by connecting major stakeholders of the energy value chain and demonstrating integrated hardware and software solutions that will facilitate the “unlocking” of the resources for the cross-border electricity flows and regional cooperation. The targets of the project are to optimise the usage of the available cross-border capacity for reserve procurement while transitioning from ATC to Flow-based mechanism, to achieve simultaneous interconnector reservation for energy and balancing capacity to enable reserve market coupling and to create state-of-art technologies to materialise market coupling platforms.