[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i19p6397-d650897.html
   My bibliography  Save this article

Assessment of the Target Model Implementation in the Wholesale Electricity Market of Greece

Author

Listed:
  • Filippos Ioannidis

    (School of Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Kyriaki Kosmidou

    (School of Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Kostas Andriosopoulos

    (School of Management, Audencia Business School, 44300 Nantes, France)

  • Antigoni Everkiadi

    (School of Informatics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

Abstract
The European Union Target Model aims to integrate European energy market by removing barriers to trade and align markets. The most important goals of the Target Model are to provide consistent prices, enhance liquidity, support cross boarder trading, facilitate interconnections, and coordinate the use of transmission system capacity. In that context, the smooth operation of both forward and spot markets is a core development that directly affects the good operation of the wholesale market. This paper examines the application of the Target Model in the wholesale electricity market of Greece and its impact on electricity prices. The study explores the time period before the implementation of the Target Model, which took place on November 2020, and the first nine months of its execution. Based on the feedback received by the rest of the European countries, which are already part of the European Single Market, this crucial period of time is considered transitional, when many distortions and unethical behaviors take place. Empirical findings indicate a relatively successful implementation of the Target Model in Greece, with price disorders mostly met in the Balancing Market.

Suggested Citation

  • Filippos Ioannidis & Kyriaki Kosmidou & Kostas Andriosopoulos & Antigoni Everkiadi, 2021. "Assessment of the Target Model Implementation in the Wholesale Electricity Market of Greece," Energies, MDPI, vol. 14(19), pages 1-22, October.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:19:p:6397-:d:650897
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/19/6397/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/19/6397/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peng, Donna & Poudineh, Rahmatallah, 2019. "Electricity market design under increasing renewable energy penetration: Misalignments observed in the European Union," Utilities Policy, Elsevier, vol. 61(C).
    2. Di Cosmo, Valeria & Lynch, Muireann Á., 2016. "Competition and the single electricity market: Which lessons for Ireland?," Utilities Policy, Elsevier, vol. 41(C), pages 40-47.
    3. Ricardo Faia & Tiago Pinto & Zita Vale & Juan Manuel Corchado, 2021. "Prosumer Community Portfolio Optimization via Aggregator: The Case of the Iberian Electricity Market and Portuguese Retail Market," Energies, MDPI, vol. 14(13), pages 1-20, June.
    4. Ioannidis, Filippos & Kosmidou, Kyriaki & Makridou, Georgia & Andriosopoulos, Kostas, 2019. "Market design of an energy exchange: The case of Greece," Energy Policy, Elsevier, vol. 133(C).
    5. Nikolaos Koltsaklis & Athanasios Dagoumas, 2018. "Policy Implications of Power Exchanges on Operational Scheduling: Evaluating EUPHEMIA’s Market Products in Case of Greece," Energies, MDPI, vol. 11(10), pages 1-26, October.
    6. Tanrisever, Fehmi & Derinkuyu, Kursad & Jongen, Geert, 2015. "Organization and functioning of liberalized electricity markets: An overview of the Dutch market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1363-1374.
    7. Ioannidis, Filippos & Kosmidou, Kyriaki & Savva, Christos & Theodossiou, Panayiotis, 2021. "Electricity pricing using a periodic GARCH model with conditional skewness and kurtosis components," Energy Economics, Elsevier, vol. 95(C).
    8. Weidlich, Anke & Veit, Daniel, 2008. "A critical survey of agent-based wholesale electricity market models," Energy Economics, Elsevier, vol. 30(4), pages 1728-1759, July.
    9. Keles, Dogan & Bublitz, Andreas & Zimmermann, Florian & Genoese, Massimo & Fichtner, Wolf, 2016. "Analysis of design options for the electricity market: The German case," Applied Energy, Elsevier, vol. 183(C), pages 884-901.
    10. Olivier Bahn, Mario Samano, and Paul Sarkis, 2021. "Market Power and Renewables: The Effects of Ownership Transfers," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    11. Papaioannou, George P. & Dikaiakos, Christos & Dagoumas, Athanasios S. & Dramountanis, Anargyros & Papaioannou, Panagiotis G., 2018. "Detecting the impact of fundamentals and regulatory reforms on the Greek wholesale electricity market using a SARMAX/GARCH model," Energy, Elsevier, vol. 142(C), pages 1083-1103.
    12. Newbery, David & Strbac, Goran & Viehoff, Ivan, 2016. "The benefits of integrating European electricity markets," Energy Policy, Elsevier, vol. 94(C), pages 253-263.
    13. Newbery, David, 2017. "Tales of two islands – Lessons for EU energy policy from electricity market reforms in Britain and Ireland," Energy Policy, Elsevier, vol. 105(C), pages 597-607.
    14. Weigt, Hannes & Hirschhausen, Christian von, 2008. "Price formation and market power in the German wholesale electricity market in 2006," Energy Policy, Elsevier, vol. 36(11), pages 4227-4234, November.
    15. Charis Vlados & Dimos Chatzinikolaou & Foteini Kapaltzoglou, 2021. "Energy Market Liberalisation in Greece: Structures, Policy and Prospects," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 115-126.
    16. Hogan, William W, 2002. "Electricity Market Restructuring: Reforms of Reforms," Journal of Regulatory Economics, Springer, vol. 21(1), pages 103-132, January.
    17. Cepeda, Mauricio & Finon, Dominique, 2011. "Generation capacity adequacy in interdependent electricity markets," Energy Policy, Elsevier, vol. 39(6), pages 3128-3143, June.
    18. Hyland, Marie, 2016. "Restructuring European electricity markets – A panel data analysis," Utilities Policy, Elsevier, vol. 38(C), pages 33-42.
    19. Vassilis Stavrakas & Nikos Kleanthis & Alexandros Flamos, 2020. "An Ex-Post Assessment of RES-E Support in Greece by Investigating the Monetary Flows and the Causal Relationships in the Electricity Market," Energies, MDPI, vol. 13(17), pages 1-29, September.
    20. Böckers, Veit & Heimeshoff, Ulrich, 2014. "The extent of European power markets," Energy Economics, Elsevier, vol. 46(C), pages 102-111.
    21. Zachmann, Georg, 2008. "Electricity wholesale market prices in Europe: Convergence?," Energy Economics, Elsevier, vol. 30(4), pages 1659-1671, July.
    22. Pellini, Elisabetta, 2012. "Measuring the impact of market coupling on the Italian electricity market," Energy Policy, Elsevier, vol. 48(C), pages 322-333.
    23. Ringler, Philipp & Keles, Dogan & Fichtner, Wolf, 2017. "How to benefit from a common European electricity market design," Energy Policy, Elsevier, vol. 101(C), pages 629-643.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefanos Tampakakis & Dimitrios Zafirakis, 2023. "On the Value of Emerging, Day-Ahead Market Related Wind-Storage Narratives in Greece: An Early Empirical Analysis," Energies, MDPI, vol. 16(8), pages 1-19, April.
    2. Nametala, Ciniro Aparecido Leite & Faria, Wandry Rodrigues & Lage, Guilherme Guimarães & Pereira, Benvindo Rodrigues, 2023. "Analysis of hourly price granularity implementation in the Brazilian deregulated electricity contracting environment," Utilities Policy, Elsevier, vol. 81(C).
    3. Nenad Sijakovic & Aleksandar Terzic & Georgios Fotis & Ioannis Mentis & Magda Zafeiropoulou & Theodoros I. Maris & Emmanouil Zoulias & Charalambos Elias & Vladan Ristic & Vasiliki Vita, 2022. "Active System Management Approach for Flexibility Services to the Greek Transmission and Distribution System," Energies, MDPI, vol. 15(17), pages 1-31, August.
    4. Ioannidis, Filippos & Kosmidou, Kyriaki & Papanastasiou, Dimitra, 2023. "Public awareness of renewable energy sources and Circular Economy in Greece," Renewable Energy, Elsevier, vol. 206(C), pages 1086-1096.
    5. Jemma J. Makrygiorgou & Christos-Spyridon Karavas & Christos Dikaiakos & Ioannis P. Moraitis, 2023. "The Electricity Market in Greece: Current Status, Identified Challenges, and Arranged Reforms," Sustainability, MDPI, vol. 15(4), pages 1-40, February.
    6. Periklis Gogas & Theophilos Papadimitriou, 2022. "Emerging Trends in Energy Economics," Energies, MDPI, vol. 15(14), pages 1-2, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2018. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Working Paper Series in Production and Energy 27, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    2. Nikolaos Koltsaklis & Athanasios Dagoumas, 2018. "Policy Implications of Power Exchanges on Operational Scheduling: Evaluating EUPHEMIA’s Market Products in Case of Greece," Energies, MDPI, vol. 11(10), pages 1-26, October.
    3. Ioannidis, Filippos & Kosmidou, Kyriaki & Makridou, Georgia & Andriosopoulos, Kostas, 2019. "Market design of an energy exchange: The case of Greece," Energy Policy, Elsevier, vol. 133(C).
    4. Jemma J. Makrygiorgou & Christos-Spyridon Karavas & Christos Dikaiakos & Ioannis P. Moraitis, 2023. "The Electricity Market in Greece: Current Status, Identified Challenges, and Arranged Reforms," Sustainability, MDPI, vol. 15(4), pages 1-40, February.
    5. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2019. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Energy Economics, Elsevier, vol. 80(C), pages 1059-1078.
    6. Ringler, Philipp & Keles, Dogan & Fichtner, Wolf, 2017. "How to benefit from a common European electricity market design," Energy Policy, Elsevier, vol. 101(C), pages 629-643.
    7. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S., 2018. "Incorporating unit commitment aspects to the European electricity markets algorithm: An optimization model for the joint clearing of energy and reserve markets," Applied Energy, Elsevier, vol. 231(C), pages 235-258.
    8. Zimmermann, Florian & Bublitz, Andreas & Keles, Dogan & Fichtner, Wolf, 2019. "Cross-border effects of capacity remuneration mechanisms: The Swiss case," Working Paper Series in Production and Energy 35, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    9. Do, Hung Xuan & Nepal, Rabindra & Jamasb, Tooraj, 2020. "Electricity market integration, decarbonisation and security of supply: Dynamic volatility connectedness in the Irish and Great Britain markets," Energy Economics, Elsevier, vol. 92(C).
    10. Samarth Kumar & David Schönheit & Matthew Schmidt & Dominik Möst, 2019. "Parsing the Effects of Wind and Solar Generation on the German Electricity Trade Surplus," Energies, MDPI, vol. 12(18), pages 1-17, September.
    11. Macedo, Daniela Pereira & Marques, António Cardoso & Damette, Olivier, 2022. "The role of electricity flows and renewable electricity production in the behaviour of electricity prices in Spain," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 885-900.
    12. Hellwig, Michael & Schober, Dominik & Woll, Oliver, 2020. "Measuring market integration and estimating policy impacts on the Swiss electricity market," Energy Economics, Elsevier, vol. 86(C).
    13. Brijs, Tom & De Jonghe, Cedric & Hobbs, Benjamin F. & Belmans, Ronnie, 2017. "Interactions between the design of short-term electricity markets in the CWE region and power system flexibility," Applied Energy, Elsevier, vol. 195(C), pages 36-51.
    14. Zorana Božić & Dušan Dobromirov & Jovana Arsić & Mladen Radišić & Beata Ślusarczyk, 2020. "Power Exchange Prices: Comparison of Volatility in European Markets," Energies, MDPI, vol. 13(21), pages 1-15, October.
    15. Do, Hung Xuan & Nepal, Rabindra & Pham, Son Duy & Jamasb, Tooraj, 2024. "Electricity market crisis in Europe and cross border price effects: A quantile return connectedness analysis," Energy Economics, Elsevier, vol. 135(C).
    16. Valeria Di Cosmo & Sean Collins & Paul Deane, 2017. "The Effect of Increased Transmission and Storage in an Interconnected Europe: an Application to France and Ireland," Working Papers 2017.37, Fondazione Eni Enrico Mattei.
    17. Ioannis P. Panapakidis & Nikolaos Koltsaklis & Georgios C. Christoforidis, 2020. "A Novel Integrated Profit Maximization Model for Retailers under Varied Penetration Levels of Photovoltaic Systems," Energies, MDPI, vol. 14(1), pages 1-27, December.
    18. Keles, Dogan & Dehler-Holland, Joris & Densing, Martin & Panos, Evangelos & Hack, Felix, 2020. "Cross-border effects in interconnected electricity markets - an analysis of the Swiss electricity prices," Energy Economics, Elsevier, vol. 90(C).
    19. Kraan, Oscar & Kramer, Gert Jan & Nikolic, Igor & Chappin, Emile & Koning, Vinzenz, 2019. "Why fully liberalised electricity markets will fail to meet deep decarbonisation targets even with strong carbon pricing," Energy Policy, Elsevier, vol. 131(C), pages 99-110.
    20. Will, Christian & Zimmermann, Florian & Ensslen, Axel & Fraunholz, Christoph & Jochem, Patrick & Keles, Dogan, 2023. "Can electric vehicle charging be carbon neutral? Uniting smart charging and renewables," Working Paper Series in Production and Energy 69, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:19:p:6397-:d:650897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.