Degree of coordination in market-coupling and counter-trading

Cross-border trade remains a contentious issue in the restructuring of the European electricity market. Difficulties stem from the lack of a common market design, the separation between energy and transmission markets and the insufficient coordination between Transmission System Operators (TSOs). This paper analyzes the cross-border trade problem through a set of models that represent different degrees of coordination both between the energy and transmission markets and among national TSOs.We first present the optimal organisation, not implemented in Europe, where energy and transmission are integrated according to the nodal price paradigm and Power Exchanges (PXs) and TSOs are integrated. This is our reference case. We then move to a more realistic representation of the European electricity market based on the so-called market-coupling design where energy and transmission are operated separately by PXs and TSOs. When considering different degrees of coordination of the national TSOs’ activities, we unexpectedly find that some arrangements are more efficient than the lack of coordination might suggest. Specifically we find that even without a formal coordination of the TSOs’ counter-trading operations, non discriminatory access to common counter-trading resources for all TSOs may lead to a partial implicit coordination of these TSOs. In other words, an internal market of counter-trading resources partially substitutes the lack of integration of the TSOs. While a full access to counter-trading resources is a weaker requirement than the horizontal integration of the TSO, it is still quite demanding. We show that quantitative limitations to the access of these resources decrease the efficiency of counter-trading. The paper supposes price taking agents and hence leaves aside the incentive to game the system induced by zonal systems.Cross-Border Energy Trade, Market-Coupling, Counter-Trading, Coordination, Generalized Nash Equilibrium

Market coupling and the organization of counter-trading: separating energy and transmission again?

The horizontal integration of the energy market and the organization of transmission services remain two open issues in the restructured European electricity sector. The coupling of the French, Belgian and Dutch electricity markets (the trilateral market) in November 2006 was a real success that the inclusion of Germany to the trilateral market should soon prolong. But the extension of market coupling whether in Central Western Europe or in other European regions encounters several difficulties and the future remains far from clear. The highly meshed grid of continental Europe complicates things and it is now sometimes recognized that the penetration of wind will further exacerbate these difficulties. The nodal system could go a long way towards solving these problems, but its implementation is not yet foreseen in the EU. This paper analyzes versions of market coupling that differ by the organization of counter- trading. While underplayed in current discussions, counter-trading will become a key element of market coupling as its geographic coverage expands and wind penetration develops. We consider a stylized six node example found in the literature and simulate market coupling for different assumptions of zonal decomposition and coordination of TSOs. We show that these assumptions matter: market coupling can be quite vulnerable to the particular situation on hand; counter-trading can work well or completely fail depending on the case and it is not clear beforehand what will prevail. Our analysis relies on standard economic notions such as social welfare, Nash and Generalized Nash equilibrium. But the use of these notions is probably novel. We also simplify matters by assuming away strategic behaviour. The nodal organization is the reference first best scenario: different zonal decompositions and degrees of coordinations are then studied with respect to this first best solution.D52, D58, Q40

Equilibrium models for the carbon leakage problem

Carbon leakage in this pape ris the phenomenon whereby Electricity Intensive Industries subject to harsh environmental standards move their activity or part of it to more environmentally lenient regions. Carbon leakage has been mentioned as a possible outcome of the EU Emission Trading Scheme. Different studies are underway to assess the reality of the phenomenon and to devise policies to mitigate its possible impact. One remedy, proposed by the Energy Intensive Industries is to combine free emission allowances with a pricing of electricity whereby energy emissions and transmission costs are bundled and sold on an average cost basis. The paper attempts to model this proposal. We cast the problem in a spatial model of the power sector where generators can develop new capacities, the transmission system is organized on a flowgate basis, emission allowances are auctioned, except possibly for industries, and traded. The consumer market is decomposed in two segments. Industries purchase electricity according to some form of average cost price, the rest of the market is supplied at marginal cost. These equilibrium models are non convex. We present the models and discuss their properties. Companion papers report policy implications.carbon leakage, emission trading scheme, electricity, energy policies, equilibrum, complementarity.

Evaluating the impact of average cost based contracts on the industrial sector in the European emission trading scheme

The inception of the Emission Trading System in Europe (EU-ETS) has made power price more expensive. This affects the competitiveness of electricity intensive industrial consumers and may force them to leave Europe. Taking up of a proposal of the industrial sector, we explore the possible application of special contracts, based on the average cost pricing system, which would mitigate the impact of CO2 cost on their electricity price. The model supposes fixed generation capacities. A companion paper treats the case with capacity expansion. We first consider a reference model representing a perfectly competitive market where all consumers (households and industries) are price-takers and buy electricity at the short-run marginal cost. We then change the market design assuming that large industrial consumers pay power either at a single or at a nodal average cost price. The analysis of these problems is conducted with simulation models applied to the Northwestern European market. The equilibrium models developed are implemented in the GAMS environment.average cost pricing, complementarity conditions, EU-ETS, Northwestern Europe market.

Average power contracts can mitigate carbon leakage

The progressive relocation of part of the Energy Intensive Industries (EIIs) out of Europe is one of the possible consequences of the combination of emission charges and higher electricity prices entailed by the EU-Emission Trading Scheme (EU-ETS). In order to mitigate this effect, EIIs have asked for special power contracts whereby they would be supplied from dedicated power capacities at average (capacity, fuel, transmission and emission allowance) costs. We model this situation on a prototype power system calibrated on four countries of Central Western Europe. In order to capture the main feature of EIIs' demand, we separate the consumer market in two segments: EIIs and the rest. EIIs buy electricity at average cost price while the rest pays marginal cost. We consider two different types of EIIs' contractual arrangements: a single region wide and zonal average cost prices. We also analyze the cases where generators only rely on existing capacities or can invest in new ones. We find that these average cost contracts can indeed partially mitigate the incentive to relocate activities but with quite diverse regional impacts depending on different national power policies. Models are formulated as a non-monotone complementarity problems with endogenous energy, transmission and allowance prices and are implemented in GAMS.average cost based contracts, carbon leakage, complementarity conditions, EU-ETS.

Characterization of catastrophic flood-related features in the English Channel

Megaflood flows are global-scale phenomena that can have a significant impact on Earth's landscapes and climate. The low frequency occurrence of these events prevents their direct observation. The analysis of ancient megaflood terrains and bedform associations are the primary resources for the understanding of catastrophic flows. Previous studies have proposed the palaeo-channel network present at the English Channel seafloor to have been carved by catastrophic flows. This thesis investigates the origin of the English Channel palaeovalley network, testing the hypothesis of its catastrophic formation and aiming to reconstruct the relative timing and magnitude of the events that formed the palaeo-channel system. Seismic reflection data reveal the presence of depressions up to 100 m-deep carved into bedrock at the proposed spill-point. New high-resolution bathymetric data show kilometre-scale channels and associated erosional bedforms that extends for more than 200 kilometres from the Dover Strait to the Central English Channel. The stratigraphic and geomorphologic analyses indicate the observed features are similar to other flood-generated features from other well-established megaflood terrains on Earth. The quantitative characterisation of the bedforms presented in this work, together with interpretation of cross-cutting relationships of the mapped erosional surfaces, allow for the reconstruction of the relative history of the catastrophic events that carved the palaeovalley network and led to the separation of Britain from Europe through the breaching of the rock ridge present at the Dover Strait. The detailed interpretation of the 100 m-deep bedrock depressions located at the proposed breach point allows for a reconstruction of the rapid erosion of the Dover Strait. Geomorphologic analyses of the palaeo-channel network and its associated bedforms and relation to bedrock geology are presented in this work thanks to available high-resolution bathymetry and seismic reflection data. Finally, the magnitude of the palaeo-flows, estimated through palaeo-hydraulic calculations, gives further evidence of the catastrophic nature of the flows. The proposed model and relative history of the English Channel megaflood is presented in agreement with palaeo-geographic and palaeontological studies previously carried out in the study area, contributing to the reconstruction of the Pleistocene palaeo-geography of north-western Europe.Open Acces

PALMA, Piante Acquatiche Lago MAggiore

No abstract availabl

Equilibrium models for the carbon leakage probem

Carbon leakage in this pape ris the phenomenon whereby Electricity Intensive Industries subject to harsh environmental standards move their activity or part of it to more environmentally lenient regions. Carbon leakage has been mentioned as a possible outcome of the EU Emission Trading Scheme. Different studies are underway to assess the reality of the phenomenon and to devise policies to mitigate its possible impact. One remedy, proposed by the Energy Intensive Industries is to combine free emission allowances with a pricing of electricity whereby energy émissions and transmission costs are bundled and sold on an average cost basis. The paper attempts to model this proposal. We cast the problem in a spatial model of the power sector where generators can develop new capacities, the transmission system is organized on a flowgate basis, emission allowances are auctioned, except possibly for industries, and traded. The consumer market is decomposed in two segments. Industries purchase electricity according to some form of average cost price, the rest of the market is supplied at marginal cost. These equilibrium models are non convex. We present the models and discuss their properties. Companion papers report policy implications

Streamlined islands and the English Channel megaflood hypothesis

Recognising ice-age catastrophic megafloods is important because they had significant impact on large-scale drainage evolution and patterns of water and sediment movement to the oceans, and likely induced very rapid, short-term effects on climate. It has been previously proposed that a drainage system on the floor of the English Channel was initiated by catastrophic flooding in the Pleistocene but this suggestion has remained controversial. Here we examine this hypothesis through an analysis of key landform features. We use a new compilation of multi- and single-beam bathymetry together with sub-bottom profiler data to establish the internal structure, planform geometry and hence origin of a set of 36 mid-channel islands. Whilst there is evidence of modern-day surficial sediment processes, the majority of the islands can be clearly demonstrated to be formed of bedrock, and are hence erosional remnants rather than depositional features. The islands display classic lemniscate or tear-drop outlines, with elongated tips pointing downstream, typical of streamlined islands formed during high-magnitude water flow. The length-to-width ratio for the entire island population is 3.4 ± 1.3 and the degree-of-elongation or k-value is 3.7 ± 1.4. These values are comparable to streamlined islands in other proven Pleistocene catastrophic flood terrains and are distinctly different to values found in modern-day rivers. The island geometries show a correlation with bedrock type: with those carved from Upper Cretaceous chalk having larger length-to-width ratios (3.2 ± 1.3) than those carved into more mixed Paleogene terrigenous sandstones, siltstones and mudstones (3.0 ± 1.5). We attribute these differences to the former rock unit having a lower skin friction which allowed longer island growth to achieve minimum drag. The Paleogene islands, although less numerous than the Chalk islands, also assume more perfect lemniscate shapes. These lithologies therefore reached island equilibrium shape more quickly but were also susceptible to total erosion. Our observations support the hypothesis that the islands were initially carved by high-water volume flows via a unique catastrophic drainage of a pro-glacial lake in the southern North Sea at the Dover Strait rather than by fluvial erosion throughout the Pleistocene

The Glymphatic System: a Potential Key Player in Bacterial Meningitis

The glial-lymphatic system (glymphatic system) is a recently characterized fluid clearance pathway of the central nervous system. Glymphatic system disfunctions leading to defects in drainage of the cerebrospinal fluid have been associated with several neurological disorders. In their article, J. S. Generoso, S. Thorsdottir, A. Collodel, R. R. E. Santo, et al. (mBio 13:e01886-22, 2022, https://doi.org/10.1128/mBio.01886-22) have now associated impaired glymphatic system functionality to neurological sequelae of murine meningitis caused by Streptococcus pneumoniae. Their work provides an initial and important step into the systematic evaluation of a potential impact of glymphatic system functionality on disease severity and sequelae in meningitis