Power Flow Colouring: A Novel Power Flow Tracing Methodology Tailored for the European Zonal Electricity Market Design

A novel power flow tracing methodology, called Power Flow Coloring (PFC), tailored for zonal electricity market design, will be explained in this paper. The basis of this method has been developed within the Horizon 2020 research project “Future Flow”. Decomposition of power flows into its components (loop flows, internal flows, transit flows, export/import flows and phase shift transformer flows) produced by particular bidding zones represents the core of the PFC's concept. The PFC is currently in discussion among European TSOs to be selected as a possible solution for the allocation of the total redispatching costs. In that sense, this method could be applied to fulfill legal requirements imposed on TSOs and related to the implementation of electricity network codes and guidelines.