What are the Implications of the new EU Directive…
A description of the loop flow phenomenon, its causes, impacts and possible solutions
Sia Partners analyzed the organization of the European electricity market and came to the conclusion that besides the physical infrastructure, the market design has a big impact on the Belgian electricity wholesale price. It appears that German renewables and its poor interconnection between North and South result in loop flows which distort Belgium electricity prices severely. One of the severest impacts is the appearance of price peaks, which can go up to 500 EUR/MWh (which is equal to 10 times the average day-ahead wholesale electricity price).
An article written by Jesse D'Haens and Cedric Colla