New Opportunities and Challenges Arising from the Opening of the Transparent and Market Based Cross-border Trading

摘要

The primary goal of the Electricity market liberalization is to promote the competition. It is assumed that trading in larger markets is more efficient due to increase of the competition and sharing of the resources. Furthermore, the liberalized market increases the role of the of consumers in the demand management and provides cost-minimising incentives for the market players. During the last year Ukraine has made the significant steps in legislation area in order to open the market, ensure non-discriminatory third-party access to power grids and enforce the cross-border trading activities. As a first visible result, NEC "Ukrenergo" has implemented the Electronic auction platform to support the allocation of transmission capacity for the cross-border trading. This platform ensures the transparent and market-based explicit auctions for yearly, monthly and daily time frames. Such auctions are usually taken as a first step to cross-border electricity trading mainly because their implementation is relatively simple and doesn't require much of the institutional harmonization between the neighbouring markets. However, in the long-term perspective they bring to local market participants a wide range of possibilities to integrate in the European market. The main purpose of the following paper is to investigate the opportunities and the challenges, which arise from implementation of the electronic auctions. The European electricity market is used as an illustrative example of how the cross-border trading has evolved with time and what challenges were faced in the process of developing of the joint market. The following topics are covered: 1. Implementation of the coordinated capacity auctions; 2. Market Coupling in the CEE region; 3. Intraday transmission capacity trading; 4. Integration with trading platforms; 5. Flow-based auctions.