Analysis of a Nodal European Electricity Day-Ahead Auction

In light of the substantial contribution of variable and unpredictable renewable energy sources, electricity markets are exposed to significant uncertainties. Presently, the day-ahead market operates assuming that the quantities of generated or consumed energy indicated in bids are certain. However, it is evident at the time of bidding that this is not the case, and information about the uncertainty of these quantities is typically available through probabilistic forecasts, such as weather predictions. It would be advantageous for both market participants and the operator to share and utilize this information to arrive at more robust dispatch decisions that are less susceptible to uncertainty. This project aims to develop and evaluate an appropriate market framework where agents can share their uncertainties.