Ensuring energy-market liquidity through adequate imbalance settlement

In this paper we assess the influence of different imbalance settlement systems on the strategic behavior of Balance Responsible Units. We therefore apply a continuous action agent-based approach in a representative test-system. The investigation points to the effects of one-/two price settlement systems as well as to the impacts of different capacity remuneration schemes. Further, we take transmission capacity limits into account and evaluate the effects of varying pricing on the energy market (with consideration of congestion) and the imbalance settlement (without consideration of congestion).