Lately, there has been increased attention on the challenges that will appear when balancing the electricity in the future and the benefits of integrated markets between countries and regions. This is among other things due to the fact that electricity markets in the future will experience major changes and challenges, which may be better addressed with closer collaboration. In order to evaluate the benefits of cross-border balancing, it is essential to have an understanding of the mechanisms and operations of the European markets and how they interact. Therefore, this paper aims at describing electricity markets in Europe: day-ahead markets and markets with shorter time spans. The focus will be on balancing markets and how these are used operationally. The most promising theoretical models found in the literature with applications to balancing will be presented. The purpose of this is to identify the tools necessary to analyze future balancing of power systems.
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10th International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Power Plants, 2011