<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The gas storage regulations are intended to increase security of supply in winter. Tenders and direct procurement by the Market Area Coordinator should ensure that gas storage facilities are filled. Both instruments can lead to a displacement of other storage volumes. Since direct procurement potentially leads to less displacement and allows for better control of strategic behavior, it may be more effective. Tender design can be improved by setting a reserve price and allowing storage obligation trading in a secondary market. Furthermore, separate tenders for withdrawal options, the elimination of the commodity price surcharge, and further adjustments can be beneficial.</p>
</abstract>

The gas storage regulations are intended to increase security of supply in winter. Tenders and direct procurement by the Market Area Coordinator should ensure that gas storage facilities are filled. Both instruments can lead to a displacement of other storage volumes. Since direct procurement potentially leads to less displacement and allows for better control of strategic behavior, it may be more effective. Tender design can be improved by setting a reserve price and allowing storage obligation trading in a secondary market. Furthermore, separate tenders for withdrawal options, the elimination of the commodity price surcharge, and further adjustments can be beneficial.

Market Design Recommendations for Filling the Gas Storage Facilities

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Empfehlungen für das Marktdesign zur Befüllung der Gasspeicher

The gas storage regulations are intended to increase security of supply in winter. Tenders and direct procurement by the Market Area Coordinator should ensure...

Market Design Recommendations for Filling the Gas Storage Facilities

Data publikacji: 01 mar 2023

Zakres stron: 105 - 111

DOI: https://doi.org/10.2478/wd-2023-0032

© 2023 Vitali Gretschko et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.