Multi-area electricity market equilibrium model and its application to the European case

Orgaz, Alberto; Bello, Antonio; Reneses, Javier

doi:10.1109/eem.2017.7981924

Cited by 6 publications

(6 citation statements)

References 24 publications

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“…Therefore, to make the proposed optimization model viable in the decision-making process for a multi-area market, it is decisive to implement an efficient methodology that reduces the huge number of possible network configurations and obtains the most usual states of the interconnections without a major loss of accuracy. For this matter, this study extends and improves significantly the methodology introduced in Reference [30].…”

Section: Network Configuration Reductionmentioning

confidence: 70%

“…These contributions represent an extension of a previous work of the authors [30], presented in the 2017 14th International Conference on the European Energy Market (EEM) in Dreden, Germany. With respect to the conference paper, the proposed methodology in this article introduces methodological improvements, particularly in dealing with the representation of the network configurations.…”

mentioning

confidence: 68%

“…This procedure has a direct impact on the results since very similar low frequency network configurations can displace the ones with more frequency when building the clusters. This effect is, however, missing in the conference paper [30].…”

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confidence: 97%

“…In contrast to Reference [30], this article presents an original clustering algorithm to select the representative network configurations. This procedure has a direct impact on the results since very similar low frequency network configurations can displace the ones with more frequency when building the clusters.…”

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confidence: 99%

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A New Model to Simulate Local Market Power in a Multi-Area Electricity Market: Application to the European Case

2019

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The work presented in this article proposes an original method that models the medium-term market equilibrium under imperfect competition circumstances in multi-area electricity systems. It provides a system analysis considering multiple market splitting possibilities, where local market power may appear according to the status of the interconnections. As a result of new policies and regulations, power systems are increasingly integrating the existing electricity markets in unified frameworks. The integration of electricity markets poses highly challenging tasks due to the uncertainty that comes from the agents’ strategic behaviors which depend on multiple factors, for instance, the state of the interconnections. When it comes to modeling these effects, the purpose is to identify each strategy by using conjectured-price responses that depend on the different states of the system. Consequently, the problem becomes highly combinatorial, which heightens its size as well as its complexity. Therefore, the purpose of this work’s methodology is the reduction of the possible network configurations so as to ensure a computational tractability in the problem. In order to validate this methodology, it has been put to the test in a realistic and full-scale two-year operation planning model of the European electricity market that consists of a group of nine countries.

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Section: Network Configuration Reductionmentioning

confidence: 70%

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confidence: 68%

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confidence: 97%

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confidence: 99%

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A New Model to Simulate Local Market Power in a Multi-Area Electricity Market: Application to the European Case

2019

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“…Equilibrium models typically answer questions related to agents' strategic behavior or policy introduction. The model presented in [25] analyzes the market power exerted by different market agents while characterizing their bidding strategies by conjectured price response. The authors of [26] propose a method to model electricity markets as single-level equilibrium problems while still identifying equilibria similar to those obtained using bi-level problems.…”

Section: Related Workmentioning

confidence: 99%

Understanding Power Market Dynamics by Reflecting Market Interrelations and Flexibility-Oriented Bidding Strategies

2022

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Power markets are becoming increasingly complex as they move towards (i) integrating higher amounts of variable renewable energy, (ii) shorter trading intervals and lead times, (iii) stronger interdependencies between related markets, and (iv) increasing energy system integration. For designing them appropriately, an enhanced understanding of the dynamics in interrelated short-term physical power and energy markets is required, which can be supported by market simulations. In this paper, we present an agent-based power market simulation model with rule-based bidding strategies that addresses the above-mentioned challenges, and represents market participants individually with a high level of technical detail. By allowing agents to participate in several interrelated markets, such as the energy-only market, a procurement platform for control reserve and a local heat market representing district heating systems, cross-market opportunity costs are well reflected. With this approach, we were able to reproduce EPEX SPOT market outcomes for the German bidding zone with a high level of accuracy (mean absolute percentage error of 8 €/MWh for the years 2016–2019). We were also able to model negative market prices at the energy-only market realistically, and observed that the occurrence of negative prices differs among data inputs used. The simulation model provides a useful tool for investigating different short-term physical power/energy market structures and designs in the future. The modular structure also enables extension to further related markets, such as fuel, CO2, or derivative markets.

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Interdependent electricity markets design: Market power and gaming

Mozdawar

Foroud

Amirahmadi

2022

International Journal of Electrical Power & Energy Systems

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Multi-area electricity market equilibrium model and its application to the European case

Cited by 6 publications

References 24 publications

A New Model to Simulate Local Market Power in a Multi-Area Electricity Market: Application to the European Case

A New Model to Simulate Local Market Power in a Multi-Area Electricity Market: Application to the European Case

Understanding Power Market Dynamics by Reflecting Market Interrelations and Flexibility-Oriented Bidding Strategies

Interdependent electricity markets design: Market power and gaming

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