Cross-border transmission infrastructure is pivotal in balancing modern power systems, but requires fair allocation of cross-border transmission capacity, possibly via fair pricing thereof. This requirement can be implemented using multi-stage market mechanisms for Physical Transmission Rights (PTRs). We analyse the related dynamics, and show prisoner's dilemma arises. Understanding these dynamics enables the development of novel market-settlement mechanisms to enhance market efficiency and incentivize renewable energy use.
@article{arxiv.2401.15772,
title = {The Effects of Transmission-Rights Pricing on Multi-Stage Electricity Markets},
author = {Erwann de Belloy de Saint-Lienard and Jakub Marecek and Vyacheslav Kungurtsev},
journal= {arXiv preprint arXiv:2401.15772},
year = {2024}
}