MODELING OF BALANCING MARKET INTEGRATION IN THE NORTHERN EUROPEAN CONTINENT

In the present work we analyse the integration of the regulating power markets in the northern continen- tal Europe including the Nordic system, Germany and the Netherlands. Different levels of balance market integration are analysed, varying from the current state with no integra- tion to full integration of the regulating markets. The day- ahead dispatch and the balancing energy market are settled separately. Firstly the day-ahead market is modelled with si- multaneous reserve procurement for the northern continen- tal Europe. Available transmission capacity is taken into ac- count in the reserve procurement phase. Secondly the bal- ancing energy market is modelled as a real-time power dis- patch using the day-ahead market clearing results as the ba- sis. Detailed results show how plant dispatch and power flows change as a result of more market integration between two synchronous systems. Cost savings are obtained due to less activation of reserves caused by imbalance netting and the use of cheaper balancing resources.