Investigations on a Fair TSO- TSO Settlement for the Imbalance Netting Process in European Power System

This paper investigates the TSO- TSO settlement methods for the imbalance netting process between TSOs. It investigates the necessity of having a TSO- TSO settlement and analyzes from an economic point of view the principles that should be fulfilled by it. Furthermore, several settlement methods are presented, that are derived from current practice and are complemented by applying a settlement method based on the Shapley value and formulating an optimization problem that allows greater flexibility in settlement outcomes.