The Impacts of an Integrated European day-ahead and Intraday Electricity Market on Market Performance: The Iberian Region Case

Abstract

Power system of the Iberian region benefits from significant penetration of renewable energy sources, whereas it is relatively isolated form the rest of the Europe, solely through an interconnection between Spain and France. This study investigates the impacts of the European Commission’s target model towards integrating electricity markets, on the market performance inside the test case of the Iberian Region. A market scenario of 2030 including 33 European countries is generated through stochastic Monte Carlo simulation, taking into account the uncertainty of renewable generation and electricity demand. We consider three 2030 market scenarios: 1) the Iberian day-ahead and intraday electricity market model without energy transactions with the rest of Europe, 2) the integration of the day-ahead Iberian market into the prospective Europe-wide electricity market model, followed by a regional intraday market within the Iberian region, and 3) the Europe-wide integration of both day-ahead and intraday markets. The market performance indicators including annual generation cost, generators’ surplus, market prices, and renewable curtailment, within Spain and Portugal are presented and compared under the three scenarios. Simulation results imply on the remarkable potency of the EU target model on more efficient utilization of renewable generation sources inside Spain and Portugal.