Analysis of flow-based parameters in IPN Vannfly - Project results

This report is written as part of the project IPN Vannfly. The goal is to analyze what data is necessary to perform good market analysis in the FBMC capacity calculation methodology. The topic of this report is the formation of the parameters defining the flow-based constraints, and two ways of including flow-based grid constraints in a market model. The difference between using a detailed grid description and using exogenous grid constraints is the core challenge of adapting to FBMC. The market actors in the Nordic region do not have access to a detailed grid description. Instead, it is expected that they will use exogenous grid constraints published by the TSOs, which are created using a detailed grid description. The FBMC methodology is better for predicting physical flow than the NTC methodology, but it is using an aggregated area approach, which requires linearizing the constraints around a predicted base case. This works well in practice, since the predicted base case is usually quite accurate, but the validity of the constraints for different market situations, and as input to market models, is uncertain.