气候变化领域集成服务门户(CCPortal): Making the most of short-term flexibility in the balancing market: Opportunities and challenges of voluntary bids in the new balancing market design

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DOI	10.1016/j.enpol.2021.112522
	Making the most of short-term flexibility in the balancing market: Opportunities and challenges of voluntary bids in the new balancing market design
	Poplavskaya K.; Lago J.; Strömer S.; de Vries L.
发表日期	2021
ISSN	0301-4215
卷号	158
英文摘要	Electricity balancing is one of the main demanders of short-term flexibility. To improve its integration, the recent regulation of the European Union introduces a common standalone balancing energy market. It allows actors that have not participated or not been awarded in the preceding balancing capacity market to participate as voluntary bidders or ‘second-chance’ bidders. We investigate the effect of these changes on balancing market efficiency and on strategic behavior in particular, using a combination of agent-based modelling and reinforcement learning. This paper is the first to model agents' interdependent bidding strategies in the balancing capacity and energy markets with the help of two collaborative reinforcement learning algorithms. Results reveal considerable efficiency gains in the balancing energy market from the introduction of voluntary bids even in highly concentrated markets while offering a new value stream to providers of short-term flexibility. ‘Second-chance’ bidders further drive competition, reducing balancing energy costs. However, we warn that this design change is likely to shift some of the activation costs to the balancing capacity market where agents are prompted to bid more strategically in the view of lower profits from balancing energy. As it is unlikely that the balancing capacity market can be removed altogether, we recommend integrating European balancing capacity markets on par with balancing energy markets and easing prequalification requirements to ensure sufficient competition. © 2021 The Author(s)
英文关键词	Balancing market; Bidding strategy; Machine learning; Market design; Market efficiency; Regulation
语种	英语
scopus关键词	Autonomous agents; Balancing; Computational methods; Energy efficiency; Learning algorithms; Reinforcement learning; Balancing energy; Balancing market; Bidding strategy; Capacity markets; Energy markets; Machine-learning; Market design; Market efficiency; Regulation; Short term; Power markets; electricity supply; energy balance; energy market; European Union; machine learning; regulatory framework
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/256574
作者单位	AIT Austrian Institute of Technology, Center for Energy, Integrated Energy Systems, 1210Vienna, Austria; Delft University of Technology, Faculty of Technology, Policy, and Management, GA Delft2600, Netherlands; Algorithms, Modeling, and Optimization, Energyville-VITO, Genk, 3600, Belgium; TU Vienna, Institute of Statistics and Mathematical Methods in Economics, Wiedner Hauptstrasse 8-10Vienna 1040, Austria
推荐引用方式 GB/T 7714	Poplavskaya K.,Lago J.,Strömer S.,et al. Making the most of short-term flexibility in the balancing market: Opportunities and challenges of voluntary bids in the new balancing market design[J],2021,158.
APA	Poplavskaya K.,Lago J.,Strömer S.,&de Vries L..(2021).Making the most of short-term flexibility in the balancing market: Opportunities and challenges of voluntary bids in the new balancing market design.Energy Policy,158.
MLA	Poplavskaya K.,et al."Making the most of short-term flexibility in the balancing market: Opportunities and challenges of voluntary bids in the new balancing market design".Energy Policy 158(2021).