Contracts for differences are widely discussed as a cornerstone of Europe’s future electricity market design. This is a paper on CfD contract design. We summarize the dispatch and investment distortions that conventional CfDs cause, the patches that are used to overcome these shortcomings, and...

Veronika Grimm, Technische Universität Nürnberg, und Axel Ockenfels, Max-Planck-Institut zur Erforschung von Gemeinschaftsgütern, Bonn, kritisieren das aktuelle Strommarktdesign in Deutschland, das durch staatliche Eingriffe und fehlende Anpassungen an ein dezentrales Stromsystem ineffizient...

The global energy system is undergoing a major transition, and in energy planning and decision-making across governments, industry and academia, models play a crucial role. Because of their policy relevance and contested nature, the transparency and open availability of energy models and data...

This paper discusses a capacity-based redispatch mechanism in which awarded market participants are compensated for their availability for redispatch, rather than activation. The rationale is to develop a market design that prevents so-called 'inc-dec gaming' when including flexible consumers...

In zonal electricity markets such as Europe’s, system operators rely on out-of-the-market measures to relieve network congestion within bidding zones. One such measure is “redispatching” power plants, i.e. increasing the output of a station downstream of the congestion while lowering...

The quality of electricity system modelling heavily depends on the input data used. Although a lot of data is publicly available, it is often dispersed, tedious to process and partly contains errors. We argue that a central provision of input data for modelling has the character of a public...

This paper proposes a game-theoretic model to analyze the strategic behavior of inc-dec gaming in market-based congestion management (redispatch). We extend existing models by considering incomplete information about competitors' costs and a finite set of providers. We find that these extensions...

The original full study analyses the ongoing reform of the European electricity market. Specific design instruments proposed by the European Commission and supported by the European Parliament amendments are assessed in detail. A novel approach to modelling financial flows in electricity markets...

The proposed reform of the electricity market design maintains crucial elements of the existing system to ensure continued efficient operation. The impact that changing the rules on longer-term contracts will have on consumer prices and investment will depend on the concrete language of proposed...