On this page, you will find brief information about research projects that were completed after 2024.
If you would like to read about projects completed earlier, please visit the document archive. The archive contains summaries of reports from completed projects up to and including 2024. Link to the archive - Document archive | Statnett.
Bid formats reflecting non-convex supply costs
European electricity market development has in recent years focused strongly on market algorithms and the coordination of energy and balancing capacity markets. At the same time, less attention has been paid to how information on costs and flexibility is actually communicated to the market through participants' bids.
To contribute to ongoing European market development, Statnett has conducted a study of how different bid formats affect the market's ability to identify efficient solutions. The study builds on ACER's analysis of the co-optimization of energy and balancing capacity (2024), but shifts the focus towards the quality of the information provided to the market-clearing algorithm.
The results show that bid formats can have a substantial impact on resource allocation and socioeconomic outcomes. The study also demonstrates how fundamental market models can be used to assess market design choices and regulatory changes at an early stage, before they are implemented and deployed.