Chart of the week | Market design concepts for offshore wind farms

The European Network of Transmission System Operators for Electricity (ENTSO-E) published a position paper on offshore wind development in October, where it advocated applying a holistic perspective when choosing the market design concept for integrating large amounts of offshore wind generation.

ENTSO-E considered three perspectives on market design:

  • Market design efficiency – price formation to reflect true costs and market outcomes to reflect physical electricity flows.
  • System operation efficiency – incentives for consumption and generation to have a balanced position and provide flexibility to the markets.
  • Alignment with policy objectives.

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