Studies on scarcity pricing and flow-based market coupling

The Belgian system operator has recently released a report that analyzes the impact of scarcity pricing on the Belgian electricity market. This report is the follow-up of two studies that were performed by the ENGIE chair group on the potential impact of scarcity pricing on the financial viability of combined cycle gas turbines in the Belgian electricity market.

A. Papavasiliou, Y. Smeers, G. Bertrand. An Extended Analysis on the Remuneration of Capacity under Scarcity Conditions , Economics of Energy and Environmental Policy, vol. 7, no. 2, 2018.

A. Papavasiliou, Y. Smeers. Remuneration of Flexibility under Conditions of Scarcity: A Case Study of Belgium, the Energy Journal, vol. 38, no. 6, pp. 105-135, 2017.

The research of the ENGIE chair group on the allocation of transmission capacity through flow-based market coupling were presented recently in Cambridge University. A video of the presentation is available online. Following this work, Professor Papavasiliou will be offering a workshop on transmission capacity allocation to the Council of European Energy Regulators in April 2019.

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