<div class="csl-bib-body">
<div class="csl-entry">Hein, L., Kollnig, M. H. M., & Moser, A. (2025, October 1). <i>Bidding zones as an instrument for setting regional price incentives for the capacity allocation of flexible consumers in the transmission grid</i> [Conference Presentation]. CIGRE 2025 International Symposium, Québec, Canada.</div>
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dc.identifier.uri
http://hdl.handle.net/20.500.12708/223964
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dc.description.abstract
The goal of achieving greenhouse gas neutrality requires a fundamental transformation of the electricity supply system. As a result of the increasing integration of renewable energy plants with a volatile generation profile and the generation of electrical energy remote from load centres, flexibility in the transmission grid is required to guarantee the security of supply. Demand-side flexibility (DSF) options such as electrolysers and large-scale battery storage systems can reduce the surplus generation from renewable energy plants. However, regional incentives are required for the localisation of flexible consumers to reduce congestion in the transmission grid. These incentives have so far been inadequate so externalities are not taken into account in investment decisions. Therefore, this paper examines the extent to which a bidding zone reconfiguration can provide effective regional price incentives for the allocation of flexible consumers and the efficient governance of investment decisions.
In the context of this paper, a method for the capacity allocation of DSF options within a market simulation is developed. This allows to model regional price signals as a result of a market split for the localisation in demand-side investment decisions and to determine the economically most efficient distribution of installed capacities to the bidding zones. Temporal couplings lead to a high complexity of the optimisation problem. Hence, the evaluation period is divided into several time slices. However, in these time slices, different regionalizations of the installed capacities can be optimal but the dimensioning decision must be time-independent. Therefore, a method is elaborated that enables the market-endogenous decision on the capacity allocation to the bidding zones even if the evaluation period is split up, whereby the homogeneity of the respective installed capacity is ensured throughout the entire evaluation period by applying penalty costs. To ensure that domestic hydrogen production is economically efficient, a hydrogen grid is modelled for electrolysers.
The methodological approach is validated as part of exemplary analyses with a European scenario framework for the target year 2030. It is shown that a bidding zone reconfiguration is an effective instrument for setting regional price signals for the capacity allocation of DSF options. Market splitting in Germany results in strong regional price incentives for flexible consumers in northern Germany due to more frequent and higher negative residual loads than in southern Germany. Furthermore, the curtailment of renewable energy plants in Germany and the intra-German power exchanges can be significantly reduced compared to a simple input data-based method for distributing flexible consumers. In addition, the total operating costs and CO₂ emissions are considerably reduced both in Germany and in the European observation area. The market-endogenous capacity allocation is not only more efficient in macroeconomic terms but also for flexible consumers on a plant-specific basis. It is also evident that seasonal differences in preferences for the capacity allocation of DSF options can occur, for which the optimal balance is found.
en
dc.language.iso
en
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dc.subject
bidding zones
en
dc.subject
demand-side investment decisions
en
dc.subject
flexible consumers
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dc.subject
capacity allocation
en
dc.subject
regional price incentives
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dc.subject
temporal decomposition
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dc.subject
market split
en
dc.subject
electricity market
en
dc.subject
electrolysers
en
dc.subject
battery storage systems
en
dc.title
Bidding zones as an instrument for setting regional price incentives for the capacity allocation of flexible consumers in the transmission grid
en
dc.type
Presentation
en
dc.type
Vortrag
de
dc.contributor.affiliation
RWTH Aachen University, Germany
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dc.contributor.affiliation
RWTH Aachen University, Germany
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dc.type.category
Conference Presentation
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tuw.researchTopic.id
E3
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tuw.researchTopic.name
Climate Neutral, Renewable and Conventional Energy Supply Systems
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tuw.researchTopic.value
100
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tuw.publication.orgunit
E370-01 - Forschungsbereich Energiesysteme und Netze
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tuw.author.orcid
0009-0005-3812-4310
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tuw.author.orcid
0000-0001-6981-510X
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tuw.event.name
CIGRE 2025 International Symposium
en
dc.description.sponsorshipexternal
Bundesministerium für Forschung, Technologie und Raumfahrt
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dc.relation.grantnoexternal
03HY128A
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tuw.event.startdate
29-09-2025
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tuw.event.enddate
03-10-2025
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tuw.event.online
On Site
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tuw.event.type
Event for scientific audience
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tuw.event.place
Québec
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tuw.event.country
CA
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tuw.event.institution
CIGRÉ Canada
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tuw.event.presenter
Hein, Lukas
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tuw.event.track
Multi Track
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wb.sciencebranch
Elektrotechnik, Elektronik, Informationstechnik
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wb.sciencebranch.oefos
2020
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wb.sciencebranch.value
100
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item.openairetype
conference paper not in proceedings
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item.openairecristype
http://purl.org/coar/resource_type/c_18cp
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item.cerifentitytype
Publications
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item.languageiso639-1
en
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item.grantfulltext
restricted
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item.fulltext
no Fulltext
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crisitem.author.dept
RWTH Aachen University, Germany
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crisitem.author.dept
E370-01 - Forschungsbereich Energiesysteme und Netze
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crisitem.author.dept
RWTH Aachen University, Germany
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crisitem.author.orcid
0009-0005-3812-4310
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crisitem.author.orcid
0000-0001-6981-510X
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crisitem.author.parentorg
E370 - Institut für Energiesysteme und Elektrische Antriebe
