气候变化领域集成服务门户(CCPortal): The cost of uncoupling GB interconnectors

CCPortal

DOI	10.1016/j.enpol.2021.112569
	The cost of uncoupling GB interconnectors
	Guo B.; Newbery D.
发表日期	2021
ISSN	0301-4215
卷号	158
英文摘要	The UK left the EU Integrated Electricity Market on 31/12/20 and with it access to Single Day Ahead Coupling that clears local and cross-border trades jointly – interconnectors are implicitly auctioned. The new Trade and Cooperation Agreement requires a replacement “Multi-region loose volume coupling” to be introduced before April 2022. Until then, interconnector capacity is allocated by an explicit day-ahead auction before the EU auction with nomination after the EU results are known. The article measures the risks posed by taking positions in each market separately and the resulting costs of uncoupling of GB's interconnector trade. It compares four forecasts of price differences under two sequencing of markets and explicit auction, determining traders' risk discounts for each. The current timing leads to lower mistakes on the direction of flows, arguing for retaining current timing. Competitive traders locking in their positions after the explicit auction (overstating costs as subsequent trading out of unprofitable positions is ignored) limit the total loss of interconnector revenue from uncoupling to €31 million/yr. The social cost of uncoupling is €28 million/yr, considerably below earlier estimates in the literature. Experience since uncoupling validates this finding. © 2021 Elsevier Ltd
英文关键词	Auctions; Electricity trading; Market coupling; Price forecasting
语种	英语
scopus关键词	Cost benefit analysis; Costs; Electric industry; Risk assessment; 'current; Cross-border trades; Day-ahead; Electricity trading; Explicit auctions; Interconnectors; Market coupling; Price forecasting; Trade agreements; Uncouplings; Power markets; auction; energy market; European Union; forecasting method; price determination; United Kingdom
来源期刊	Energy Policy
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/256528
作者单位	School of Applied Economics, Renmin University of China, China; Energy Policy Research Group, University of CambridgeUK, United Kingdom; Faculty of Economics, University of Cambridge, Sidgwick Ave., Cambridge, UK CB3 9DE, United Kingdom
推荐引用方式 GB/T 7714	Guo B.,Newbery D.. The cost of uncoupling GB interconnectors[J],2021,158.
APA	Guo B.,&Newbery D..(2021).The cost of uncoupling GB interconnectors.Energy Policy,158.
MLA	Guo B.,et al."The cost of uncoupling GB interconnectors".Energy Policy 158(2021).