Coordinated bidding in sequential electricity markets: Effects of price-making

A-Tier
Journal: Energy Economics
Year: 2025
Volume: 144
Issue: C

Authors (3)

Miskiw, Kim K. (not in RePEc) Kraft, Emil (not in RePEc) Fleten, Stein-Erik (Norges teknisk-naturvitenskapl...)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

As the uncertainty and time granularity of short-term electricity markets increase and as intraday trading gains importance, deriving good trading decisions becomes increasingly complex. This paper analyses the potential benefit of coordinating bids in three sequential electricity markets using a three-stage stochastic optimisation. The modelled markets include a typical European market setting consisting of a balancing reserve, a day-ahead, and an intraday market. Due to limited intraday market liquidity, the trading strategies also take price impacts into account. The results indicate that coordinated bidding can increase profitability, with the extent of gains depending on the price impacts. In a case study with a biomass and photovoltaic portfolio operating in Germany, we find that coordinated bidding increases the average revenue by around 18% over all analysed type days. As renewable generation continues to increase, trading strategies that coordinate bids across markets are expected to become increasingly important.

Technical Details

RePEc Handle
repec:eee:eneeco:v:144:y:2025:i:c:s0140988325001392
Journal Field
Energy
Author Count
3
Added to Database
2026-01-25