Towards the European internal electricity market: An efficient cross-zonal redispatch cost-sharing methodology among European transmission system operators

In this paper, some possible causes for the activation of remedial actions are touched upon, seen within the light of the zonal-based market design in Europe. Supported by a small test case, an efficient and fair principle for cost-sharing of cross-zonal redispatch is proposed, that is in line with the European target model for capacity calculation and allocation. The developed cost sharing key for the cross-zonal redispatch interlinks both the commercial and the physical world by means of a common grid model, and facilitates a cost sharing for the different types of cross-zonal remedial actions which are “activated” either in the planning phase or deployed close to the real-time.