In order to cope with intra-zonal grid constraints, we propose a hierarchical paradigm for organizing balancing and congestion management in European zonal markets. Our approach relies on an aggregation function which converts balancing market offers to zonal market offers that adhere to the bidding format of European balancing platforms, followed by a disaggregation function for dispatching and settlement which represents physical constraints of network flow. We investigate various design choices related to our proposed aggregation- disaggregation paradigm. We test our proposed methodology on a 46-node model of the Nordic system by reporting on a variety of technical and economic performance metrics.
Papavasiliou, A., Doorman, G., Bjørndal, M., Langer, Y., Leclercq, G., & Crucifix, P. (2022). Interconnection of Norway to European Balancing Platforms Using Hierarchical Balancing. In Institute of Electrical and Electronics Engineers (IEEE) (ed.), 2022 18th International Conference on the European Energy Market (EEM). IEEE Xplore. https://doi.org/10.1109/EEM54602.2022.9921153