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Passive Balancing through Intraday Trading

Authors: Christopher Koch; Philipp Maskosa;

Passive Balancing through Intraday Trading

Abstract

Transmission System operators actively balance the electricity system by sending a dispatch signal to suppliers of balancing reserve. When market participants take an intentional imbalance position that is opposed to the system imbalance, they can also reduce the required dispatch of balancing reserves. This is called passive balancing. The German imbalance price system incites this behavior, even though it is legally prohibited. This paper examines whether passive balancing prevails in Germany and how it affects the system stability. Our analysis indicates that market participants react on the latest published system balance by taking an intraday position that is opposed to the expected system balance. This behavior has a positive impact on system balancing. Intraday trading close to delivery reduces both the required demand of balancing energy and high system balances up to 13% without causing a critical overshoot of the system.

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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Top 10%
Average
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