Joint project EOM-Plus

Analysis of the short and medium-term effects of market-based bottleneck instruments as a regional and temporary supplement to the existing energy-only electricity market design

Subproject: Transmission system level

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Funding: Federal Ministry for Economic Affairs and Energy

Abstract: In the joint project “EOM-Plus”, a team led by Prof. Veronika Grimm and Dr. Jonas Egerer with colleagues from TH Ingolstadt and the Stiftung Umweltenergierecht (Würzburg) will research the short- and medium-term effects of market-based bottleneck instruments as a regional and temporary supplement to the existing energy-only electricity market design over the next three years as part of the BMWi’s 7th Energy Research Programme. The project aims to conceptually develop and analyse various forms of these so-called “smart markets” and their respective embedding in the current market design.

The EOM-Plus project addresses central energy policy issues with a focus on the short- and medium-term effects of regional congestion markets on the cost structures within these smart markets, as well as on the potential for cost savings in the overall system compared with the existing mechanisms of congestion management. Different scenarios regarding renewable energy expansion and grid expansion are considered. The scientists are particularly interested in the regional steering effect of smart markets for the operation of plants and for investments in climate-friendly, flexible generation and storage capacities. The results will also shed light on the need for grid expansion under different framework conditions. Another focus will be on the problem of strategic bidding behaviour of players in the smart market or between different submarkets and necessary adjustments to the regulatory framework.

Project manager: Veronika Grimm and Jonas Egerer

Staff: Lukas Lang and Ulrike Pfefferer

Project term: 2019 – 2023

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Publications:

2023

2022