• Document: Indo German Energy Programme Green Energy Corridors Market Design for an Electricity System with higher share of RE Energy Sources
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Indo – German Energy Programme Green Energy Corridors Market Design for an Electricity System with higher share of RE Energy Sources Published by Consortium Partners Ernst & Young LLP, India Fraunhofer IWES, Germany University of Oldenburg, Germany FICHTNER GmbH & Co. KG, Germany Contents 1 Problem Statement 1 1.1 High Delivered Cost of RE Power 1 1.2 Burden on DISCOMs on Purchase of RE power 1 1.3 Deviation from RE Schedule 2 1.4 Non Uniform Distribution of RE potential 3 2 Current Indian power market 4 2.1 Introduction 4 2.2 Structure of Indian Electricity Market 5 2.3 Transactions in the Market 6 3 German Electricity Market 14 3.1 Regulatory Framework 14 3.2 Introductive example 15 3.3 Balancing groups 17 3.4 Market based balancing 18 3.4.1 Scheduling 19 3.4.2 Spot market 20 3.5 Product specifications 21 3.5.1 Day-ahead auctions 21 3.5.2 Orders 21 3.5.3 Price determination 24 3.5.4 Post trading period 24 3.5.5 15-min. intraday auction 25 3.5.6 Intraday continuous trading 25 3.6 Control energy or reserves for imbalances 27 3.6.1 Pricing, remuneration and settlement 27 3.7 Cross-border trading 28 3.8 Market coupling 30 3.8.1 Cross border capacity allocation 31 3.9 Network tariffs 32 3.10 Renewable Energies within the set-up of regulation and mechanisms 33 3.10.1 Funding and refinancing 33 3.10.2 Marketing of RE and conformity with balancing group concept 34 3.10.3 Impact on short-term markets and consequences 35 4 Ancillary Services (AS) 40 4.1 Development of joint operational procedures 41 4.2 Organizational Implementation of the Frequency Control 42 4.2.1 Control activities 42 4.2.2 Assessment of balancing needs and level of responsibility 45 4.3 Methodology of reserve dimensioning 53 4.3.1 Primary reserve 54 4.3.2 Secondary and minute reserve 55 4.4 Specification of reserves 58 4.4.1 Prequalification 58 4.4.2 Product specifications 59 4.4.3 Recommendation for the introduction of restoration reserve as ancillary service 61 4.4.4 Implementation of grid control cooperation 62 4.5 Voltage control 64 4.5.1 Market design for voltage support 65 4.5.2 Examples of current approaches to contract voltage support in Europe 65 4.5.3 Voltage support by RES 66 4.6 Black start 67 4.7 RES capabilities to provide ancillary services 67 4.8 German Scenario 7

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