Monitoring and Mitigation of Market Manipulation in Redispatch Markets

Redispatch markets can help to facilitate the integration of flexible resources into the redispatch. However, redispatch markets tend to be prone to concerns regarding the abuse of market power and market manipulation in the form of inc-dec gaming. This paper collects and categorizes market monitoring and mitigation measures (MMs) for inc-dec gaming, currently being discussed to aid the operation of flexibility markets. After discussing the market monitoring approaches it can be concluded that market monitoring alone will not be sufficient for coping with inc-dec gaming. This evidences the importance of MMs, which are subsequently reviewed considering their effectivity, efficiency, complexity, and impact for market participants. We identify advantages, disadvantages, trade-offs of the measures and highlight challenges but also the importance of adequate MMs. We argue that if a redispatch market is (to be) implemented, this topic should be carefully tackled to ensure an efficient market operation.