New reports published in collaboration with Constructor University

Check out the new reports here:

"TSO Coordination and Strategic Behaviour: A Game Theoretical and Simulation Model Study based on the German Electricity Grid" by Franziska Flachsbarth, Anna Pechan, Martin Palovic, Matthias Koch, Dierk Bauknecht, Gert Brunekreeft from Constructor University. Bremen Energy Working Papers No. 48, July 2024

Abstract:
The electricity grid includes multiple network areas managed by different operators, with transmission
system operators (TSOs) handling high-voltage areas and distribution system operators managing mid-
to low-voltage areas. These areas are interconnected and synchronized, creating classical external
effects where one operator's actions impact others. Recently, high voltage direct current (HVDC) lines
have been introduced, offering operators greater flexibility and control over power flows compared to
conventional alternating current (AC) lines, thereby reducing congestion and losses. However, HVDC
lines can significantly affect neighbouring grids, potentially leading to strategic behaviour by network
operators.
This paper examines the strategic use of HVDC lines, using a model-based approach on projected 2030
market data in the German electricity system. It finds that without explicit coordination mechanisms
most hours result in incentives for non-cooperative outcomes, with only three hours within one year
showing incentives for a cooperative outcome. Despite lower overall system costs with cooperation,
asymmetric distribution of cooperation benefits prevents long-term cooperation. Thus, cost-revenue-
sharing schemes are needed to promote cooperation and balance benefits.

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"Policy measures to apply the Whole System Approach (WSA) in energy infrastructures" by Gert Brunekreeft, Dierk Bauknecht, Martin Palovic, Anna Pechan, Franziska Flachsbarth, Matthias Koch from Constructor University. Bremen Energy Working Papers No. 47, June 2024

Abstract:

Following liberalization and especially the energy transition, energy infrastructures are developing rapidly and significantly. Electricity networks are expanded to facilitate connection of renewable energies and new load such as heat pumps and electric mobility. On the one hand, gas networks are preparing for a phase-out and, on the other hand, for a possible repurposing for transportation of hydrogen. At a communal level, the heat supply moves towards heat pumps and district heating, both in turn affecting electricity and gas infrastructure. Lastly, infrastructure for hydrogen and CO2 for CCS are being developed. These developments affect various stages within the energy sectors. These simultaneous and interactive developments require coordination between and within the different energy infrastructure. Improving the coordination of energy infrastructures has been coined Whole System Approach (WSA). In this report, we examine approaches and policy measures for applying the Whole System Approach.