The definition of bidding zones is a relevant question for electricity markets. The bidding zones can be identified starting from information on the nodal prices and network topology, considering the operational conditions that may lead to congestion of the transmission lines. A well-designed bidding zone configuration is a key milestone for an efficient market design and a secure power system operation, being the basis for capacity allocation and congestion management processes, as acknowledged in the relevant European regulation. Alternative bidding zone configurations can be identified in a process assisted by the application of clustering methods, which use a predefined set of features, objectives and constraints to determine the partitioning of the network nodes into groups. These groups are then analysed and validated to become candidate bidding zones. The content of the manuscript can be summarized as follows: (1) A novel probabilistic multi-scenario methodology was adopted. The approach needs the analysis of features that are computed considering a set of scenarios defined from solutions in normal operation and in planned maintenance cases. The weights of the scenarios are indicated by TSOs on the basis of the expected frequency of occurrence; (2) The relevant features considered are the Locational Marginal Prices (LMPs) and the Power Transfer Distribution Factors (PTDFs); (3) An innovative computation procedure based on clustering algorithms was developed to group nodes of the transmission electrical network into bidding zones considering topological constraints. Several settings and clustering algorithms were tested in order to evaluate the robustness of the identified solutions.

The framework of energy transition poses significant challenges in subtransmission network development, where the increased renewable energy generation is collected, in order to efficiently convey power production, avoiding limitations in a range of operating conditions. In this paper, a method to evaluate possible margins for further renewable penetration due to electric network development is assessed, by means of scenario evaluation for the concretisation of renewable initiatives, combined producibility analysis, and load flow studies, accounting for operation islands in subtransmission network organisation, carried out in N and N-1 conditions. The method is applied to a provisional model of the southern part of the Italian power system.

In this paper an optimization problem designed to calculate electric grid specific indicators to be used within model-based methodologies for the definition of alternative electricity market bidding zone configurations is designed. The approach integrates within the framework of a bidding zone review process aligned to the specifications of the Commission Regulation (EU) 2015/1222 (CACM) and Regulation (EU) 2019/943 of the European Parliament and of the Council (CEP). The calculated solution of the optimization provides locational marginal prices and allows to determine, outside the optimization problem, the power transfer distribution factors for critical elements. Both indicators can be used as inputs by specially designed clustering algorithms to identify model-based electricity market bidding zone configurations, as alternative to the current experience-based configurations. The novelty of the optimization problem studied in this paper consists in integrating the N-1 security criteria for transmission network operation in an explicit manner, rather than in a simplified and inaccurate manner, as encountered in the literature. The optimization problem is evaluated on a set of historical and significant operating scenarios of the Italian transmission network, carefully selected by the Italian transmission system operator. The results show the optimization problem capability to produce insightful results for supporting a bidding zone review process and its advantages with respect to simplified methodologies encountered in the literature.

Long-term transmission expansion planning has to face the energy transition in a restructured electricity market environment. Increased transmission capacity within and between Member States is likely to play an essential role in maintaining the secure and economic operation of the whole European power system and ensuring the integration of growing renewable generation. This paper proposes a novel iterative methodology aimed at assessing an optimal level of interconnection between relevant bidding zones, simultaneously investigating different potential alternatives. Starting from a reference grid, a multi-criteria analysis is adopted to select the additional transmission capacities to be tested in each iteration via network and market simulations in order to confirm that transmission expansion benefits outweigh the estimated realization costs. The proposed approach is applied to the Italian case in two contrasting energy scenarios for the mid-term 2030 and very-long-term 2040 horizons: different development strategies are derived, and the least regret criterion is applied to define the most cost-effective as the target development strategy for the Transmission System Operator (TSO). Furthermore, sensitivity analyses on relevant input data variation are performed to test the robustness of the results obtained.

A growing interest in offshore wind energy in the Mediterranean Sea has been recently observed thanks to the potential for scale-up and recent advances in floating technologies and dynamic cables: in the Italian panorama, the offshore wind connection requests to the National Transmission Grid (NTG) reached almost 84 GW at the end of September 2024. Starting from a realistic estimate of the offshore wind power plants (OWPPs) to be realized off the southern coasts in a very long-term scenario, this paper presents a novel optimization procedure for meshed AC offshore network configuration, aiming at minimizing the offshore wind generation curtailment based on the DC optimal power flow approximation, assessing the security condition of the whole onshore and offshore networks. The reactive power compensation aspects are also considered in the optimization procedure: the optimal compensation sizing for export cables and collecting stations is evaluated via the AC optimal power flow (OPF) approach, considering a combined voltage profile and minimum short circuit power constraint for the onshore extra-high voltage (EHV) nodes. The simulation results demonstrate that the obtained meshed network configuration and attendant re-active compensation allow most of the offshore wind generation to be evacuated even in the worst-case scenario, i.e., the N1 network, full offshore wind generation output, and summer line rating, testifying to the relevance of the proposed methodology for real applications.