Zonal Electricity Pricing: Market design and implications for the German electricity marketWith ongoing expansion of renewable generation capacity in regional clusters, it becomes increasingly critical to overthink the existing electricity market design. The market results can oftentimes not be realised as the transmission grid is restricted. Zonal pricing has been proposed as an approach to counter such problems. It has been implemented in the Californian electricity market with mixed results. The objective of this Master thesis is to build on an analysis that was conducted for the Californian electricity market and determine appropriate market zones for the German electricity market. Furthermore, advantages and disadvantages of the zonal pricing design should be discussed with regards to the alternative nodal pricing design.
Formale Anforderungen:The thesis is supposed to be written in English. Interest in economic research questions is required. Programming knowledge is desired but not necessary.
Relevante Literatur:Walton, S., & Tabors, R. D. (1996). Zonal transmission pricing: methodology and preliminary results from the WSCC. The Electricity Journal, 9(9), 34-41.
Egerer, J., Weibezahn, J., & Hermann, H. (2016). Two price zones for the German electricity market—Market implications and distributional effects. Energy Economics, 59, 365-381.
Alaywan, Z., Wu, T., & Papalexopoulos, A. D. (2004, October). Transitioning the California market from a zonal to a nodal framework: An operational perspective. In Power Systems Conference and Exposition, 2004. IEEE PES (pp. 862-867). IEEE.