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Congestion Management in Electricity Networks: Nodal, Zonal and Discriminatory Pricing

Holmberg, Pär (author)
Research Institute of Industrial Economics (SE)
Lazarczyk Carlson, Ewa (author)
Stockholm School of Economics,Handelshögskolan i Stockholm
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English.
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  • IFN Working paper. Wholesale electricity markets use different market designs to handle congestion in the transmission network. We compare nodal, zonal and discriminatory pricing in general networks with transmission constraints and loop flows. We conclude that in large games with many producers who are allowed to participate in the real-time market the three market designs result in the same efficient dispatch. However, zonal pricing with counter-trading results in additional payments to producers in export-constrained nodes.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Elektroteknik och elektronik (hsv//swe)
ENGINEERING AND TECHNOLOGY  -- Electrical Engineering, Electronic Engineering, Information Engineering (hsv//eng)

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