A market game for the new gas balancing market in Italy

The introduction of a market-based balancing system can be particularly complex in those countries where the spot market is not transparent or does not provide sufficient liquidity for the Transmission System Operator´s flexibility needs. This is indeed the case for Italy: this paper provides an experimental analysis of the balancing market to be launched in Italy within the outlined framework. Through a market game involving professional players, the authors test the reliability of the new balancing market and the likelihood of the convergence of its prices towards the spot market´s prices. The experiment sheds some light also on the possible strategies to be implemented on the new market, and highlights eventual unexpected outcomes connected to the market design.