Future Power Market Platform

With a potential transition to locational marginal pricing (LMP) in Europe—as an alternative to bidding zone splits—two key questions arise. First, instead of paying for redispatch in large zones, market operators will obtain congestion revenue from LMP pricing. How can these revenues be used to address distributional concerns from the introduction of LMP? Second, how can market participants hedge locational price risk (or “basis risk”) stemming from price differences across nodes?

We want to learn from North American markets that adopted LMP over the past decades, where Financial Transmission Rights (FTRs)/Congestion Revenue Rights (CRRs) have become the central solution to both challenges. Three experts share implementation and operational insights. 

The webinar was jointly organized with he US Future Power Market Forum.