Non-convexities in European day-ahead electricity markets: Belgium as a case study

This paper reviews important issues at stake concerning non-convexities in coupled European day-ahead electricity markets. After reviewing the two main types of non-convexities introduced in such markets, some well-known facts on uniform pricing are recalled by means of toy examples. A closer look is given to the possibility to use non-uniform prices in the future, considering aspects of the problem from an economic, algorithmic and legal perspective. Numerical insights are provided for instances corresponding to the Belgian market. The present contribution mainly aims at fostering debates on non-uniform pricing as a possible mid-term solution to rising challenges posed by an ever-growing Pan-European day-ahead electricity market.