| ID | 177475 |
| Title Proper | Measuring inefficiency in international electricity trading |
| Language | ENG |
| Author | Montoya, L.G |
| Summary / Abstract (Note) | Interconnectors reduce the cost of supplying electricity if they are operated efficiently. We show that established metrics which are used to monitor electricity trading inefficiency are inaccurate for several typical trading conditions. We propose two new metrics—the Unweighted and Price-Weighted Inefficient Interconnector Utilisation indices—to address these deficiencies. These metrics are substantially more accurate than existing ones and perform equally well whether or not interconnected markets have coupled trading. Our analyses show a substantial decrease in inefficient trading between Great Britain (GB) and both France and the Netherlands after the European Union's market coupling regulations were introduced in 2014. |
| `In' analytical Note | Energy Policy Vol.143; Aug 2020: p.111521 |
| Journal Source | Energy Policy 2020-08 143 |
| Key Words | Metrics ; Interconnector ; Market Coupling ; Electricity Trading Efficiency ; Cross-Border Allocation |