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arXiv · 2401.15772

The Effects of Transmission-Rights Pricing on Multi-Stage Electricity Markets

Erwann de Belloy de Saint-Lienard·Jakub Marecek·Vyacheslav Kungurtsev
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Abstract

Cross-border transmission infrastructure is pivotal in balancing modern power systems, but requires fair allocation of cross-border transmission capacity, possibly via fair pricing thereof. This requirement can be implemented using multi-stage market mechanisms for Physical Transmission Rights (PTRs). We analyse the related dynamics, and show prisoner's dilemma arises. Understanding these dynamics enables the development of novel market-settlement mechanisms to enhance market efficiency and incentivize renewable energy use.

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Erwann de Belloy de Saint-Lienard, Jakub Marecek, Vyacheslav Kungurtsev. 2024-01-28. The Effects of Transmission-Rights Pricing on Multi-Stage Electricity Markets. https://arxiv.org/abs/2401.15772

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