An efficient congestion management system is a necessary condition to remove obstacles to the cross border trade of electricity in Europe and hence to move towards an internal electricity market. Locational marginal pricing (LMP)is progressively becoming the benchmark of congestion management in...

Since the liberalization of power markets in Europe, almost all investments have required government subsidies. This demonstrates the failure of short-term markets to send the right price signals to investors, but other market failures have been brought to light, among which is market...