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Balancing and Intraday Market Design: Options for Wind Integration

Discussion Papers 1162, 34 S.

Frieder Borggrefe, Karsten Neuhoff


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EU Member States increase deployment of intermittent renewable energy sources to deliver the 20% renewable target formulated in the European Renewables Directive of 2008. To incorporate these intermittent sources, a power market needs to be flexible enough to accommodate short-term forecasts and quick turn transactions. This flexibility is particularly valuable with respect to wind energy, where wind forecast uncertainty decreases significantly in the final 24 hours before actual generation. Therefore, current designs of intraday and balancing markets need to be altered to make full use of the flexibility of the transmission system and the different generation technologies to effectively respond to increased uncertainty. This paper explores the current power market designs in European countries and North America and assesses these designs against criteria that evaluate whether they are able to adequately handle wind intermittency.

Karsten Neuhoff

Head of Department in the Climate Policy Department

Keywords: Power market design, integrating renewables, wind energy, balancing, intraday
Frei zugängliche Version: (econstor)