KU Leuven

Promotor / Supervisor

  •   Prof. dr. ir. Ronnie Belmans (promotor)
  •   Prof. dr. Jean-Michel Glachant (mede-promotor) , Université de Paris Sud II

Samenvatting van het onderzoek / Summary of Research

The rise of renewable energy, together with the objectives of market integration have pushed European electricity markets to new limits, especially with challenges on the balancing systems and balancing market design. Consequently, new balancing market designs, both at national and cross-border levels, have been proposed, aiming at a more competitive, cost-reflective, flexible and reliable market system. However, the complexity of power systems in general and of balancing markets in particular has made the market designing task difficult. Many factors, actors and constraints need to be considered, resulting in no straightforward conclusion on choices of a market design. 
Strategic behavior and market power are closely related with each other and together, they distort the market efficiency. Especially in balancing market, technology requirements and transmission capacity constraints have limited the market competition and integration levels, giving more chances for market power exercise and strategic behavior implementation. Additionally, balancing market and imbalance settlement have close relations with trading on day-ahead market, making the impact of market power and strategic behavior expands to broader scope whereas becomes more difficult to analyzed due to dynamics of these interrelated markets.

In this thesis, two balancing market designs: imbalance settlement mechanism (at national level) and reservation of interconnection capacity for balancing services exchange (at cross-border level) are studied using agent-based modeling approach. Electricity generators are modeled as autonomous agents with set of possible strategy. Agents choose and learn through evolution of the model and finally reach an optimal choice for his profit maximization. The environmentin which the agents act and interact is the interrelated power market including sequential auctions and clearings of day-ahead, real-time balancing procurement and imbalance settlement. Market outcomes of different scenarios in which different market designs are compared with each other to analyze the impact of market design on behavior of generators and market efficiency. Especially, the influenceof different market designs on generators' market power, ignored in most academic work in this field, is the main focus of this thesis. 

Volledige tekst van het doctoraat / full text

Examencommissie / Board of examiners

  •   Prof. dr. ir. Ronnie Belmans (promotor)
  •   Prof. dr. Jean-Michel Glachant (mede-promotor) , Université de Paris Sud II
  •   Prof. dr. ir. Hendrik Van Brussel (voorzitter/chairman)
  •   Prof. dr. Stefaan Proost (secretaris/secretary)
  •   De heer Leonardo Meeus
  •   Prof. dr. Nouredine Hadjsaid , Grenoble Institute of Technology
  •   Prof. dr. Margot Weijnen , TU Delft