Impact of the Remaining Available Margin Calculation Method on Flow-Based Market Coupling and Redispatch

The European Union's Clean Energy Package aims to strengthen the European internal electricity market by introducing a minimum remaining available margin of 70 % for electricity trading across bidding zones. The associated alleviation of trade barriers contributes to a cost-effective electricity generation. On the other hand, this requirement leads to increased congestion in the European transmission grid. The costs of the redispatch, necessary to relieve the congestion, may offset the potential cost savings in the electricity market. Therefore, the question arises how remaining available margins should be sized in order to achieve an optimal trade-off between electricity market cost reductions and additional redispatch costs. The novel approach for calculating remaining available margins described in this paper aims to create a better trade-off between electricity market cost reductions and additional redispatch costs. Preliminary results show that the developed approach can contribute to a reduction in total costs and CO
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emissions.