Macroeconomic benefit of integrated markets for reserve balancing in Europe

The increasing share of renewable energies in the European power generation system lead to rising uncertainties in power generation and increasing demand for flexibility. Additionally, the EU pushes the integration of the reserve markets by implementing a reserve exchange. This paper describes a market simulation method based on a three-step-approach to consider uncertainties in feed-in of RES and integrated reserve markets. At this, a fundamental optimization method based on a Lagrangian Relaxation is used. Exemplary results are shown for the year 2024. The results illustrate the macroeconomic benefit of the implementation of a reserve exchange in integrated reserve markets in Europe.