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The Effects of Transmission-Rights Pricing on Multi-Stage Electricity Markets

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arxiv 2401.15772 v1 pith:UOTA6T6W submitted 2024-01-28 math.OC cs.GT

Erwann de Belloy de Saint-Lienard , Jakub Marecek , Vyacheslav Kungurtsev This is my paper · ORCID
classification math.OCcs.GT
keywords transmissioncross-borderdynamicsfairmarketmechanismsmulti-stagepricing
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Cross-border transmission infrastructure is pivotal in balancing modern power systems, but requires fair allocation of cross-border transmission capacity, possibly via fair pricing thereof. This requirement can be implemented using multi-stage market mechanisms for Physical Transmission Rights (PTRs). We analyse the related dynamics, and show prisoner's dilemma arises. Understanding these dynamics enables the development of novel market-settlement mechanisms to enhance market efficiency and incentivize renewable energy use.

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