Karsten Neuhoff on electricity balancing markets

Prof. Karsten Neuhoff is Head of the Climate Policy Department at the German Institute for Economic Research (DIW Berlin). In this interview by the FSR Research and Policy Coordinator Ilaria Conti, Prof. Neuhoff answers questions on the evolution of electricity balancing in Europe in light of the current and upcoming challenges. And, one big question: can we think of a single electricity Balancing market for Europe? Recorded on 1 November 2015, Milan “a common approach on balancing will be very important, because ultimately that reflects a common approach of operating the system, and only if we find a common way of operating the system then we can exchange information accurately between TSOs and run the system precisely” “Starting from the past, European efforts had been initially on the day-ahead, and now to some extent on the intra-day market, and very often defining the interphases between countries. That is sufficient if you have stable flows in a conventional power system. The future…”