Congestion Management in European Power Networks: Criteria to Assess the Available Options

25 Pages Posted: 18 Oct 2011

See all articles by Karsten Neuhoff

Karsten Neuhoff

German Institute for Economic Research (DIW Berlin)

Benjamin F. Hobbs

Johns Hopkins University

David M. G. Newbery

University of Cambridge - Department of Applied Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: October 1, 2011

Abstract

EU Member States are pursuing large scale investment in renewable generation in order to meet a 2020 target to source 20% of total energy sources by renewables. As the location for this new generation differs from the location of existing generation sources, and is often on the extremities of the electricity network, it will create new flow patterns and transmission needs. While congestion exists between European countries, increasing the penetration of variable sources of energy will change the current cross-border congestion profile. It becomes increasingly important for the power market design to foster the full use of existing transmission capacity and allow for robust operation even in the presence of system congestion. After identifying five criteria that an effective congestion management scheme for European countries will need, this paper critically assess to what extent the various approaches satisfy the requirements.

Keywords: Power market design, integrating renewables, congestion management

Suggested Citation

Neuhoff, Karsten and Hobbs, Benjamin F. and Newbery, David M. G., Congestion Management in European Power Networks: Criteria to Assess the Available Options (October 1, 2011). DIW Berlin Discussion Paper No. 1161, Available at SSRN: https://ssrn.com/abstract=1945704 or http://dx.doi.org/10.2139/ssrn.1945704

Karsten Neuhoff (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Benjamin F. Hobbs

Johns Hopkins University ( email )

Whiting School of Engineering
Baltimore, MD 21218
United States
410 516-4681 (Phone)
410 516-8996 (Fax)

David M. G. Newbery

University of Cambridge - Department of Applied Economics ( email )

Sidgwick Avenue
Cambridge, CB3 9DE
United Kingdom
+44 1223 335 246 (Phone)
+44 1223 335 299 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom
+44 1223 335 246/7 (Phone)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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