The effects of harmonized European climate policy targets in comparison to national targets utilizing a European electricity market model

2017 ◽  
Author(s):  
Lukas Nacken ◽  
Thomas Mobius
Keyword(s):  
Climate Policy ◽  
Electricity Market ◽  
Market Model ◽  
European Climate ◽  
Policy Targets

scholarly journals Non-smooth analysis in a national electricity market model: a complex approach

Memorias ◽  
2018 ◽  
pp. 58-66
Author(s):  
Johnny Valencia ◽  
Gerard Olivar ◽  
Johan Manuel Redondo ◽  
Danny Ibarra Vega ◽  
Carlos Peña Rincón
Keyword(s):  
System Dynamics ◽  
Electricity Market ◽  
Equilibrium Points ◽  
Supply And Demand ◽  
Market Model ◽  
National Network ◽  
Demand Growth ◽  
Zero Rate ◽  
National Electricity Market ◽  
Business Approach

In this paper, we show the preliminary results in a proposed a model for the supply and demand of electricity in a domestic market based on system dynamics. Additionally, the model indicates piecewise smooth differential equations arising from the diagram of flows and levels, using dynamical systems theory for the study of the stability of the equilibrium points that have such a system. A bifurcation analysis approach is proposed to define and understand the complex behavior. Until now, no work has been reported related to this topic using bifurcations criteria. The growing interest in personal ways of self-generation using renewable sources can lead the national grid to a standstill and low investment in the system. However, it is essential to preserve the national network as a power supply support to domestic and enterprise demand. To understand this scenario, we include an analysis of zero-rate demand growth. Under this hypothesis, a none smooth bifurcation appears related to a policy which involves the variation of the capacity charge. As a first significant result, we found that it is possible to preserve the investments in the market since, through the capacity charge parameter, the system dynamics can be controlled. Then, from a business approach, it is necessary to know the effects of the capacity charge as the strategic policy in the system generation price scheme.

scholarly journals A Speculative Trading Model for the Electricity Market: Based on Japan Electric Power Exchange

Energies ◽  
2019 ◽  
Vol 12 (15) ◽  
pp. 2946
Author(s):  
Jun Maekawa ◽  
Koji Shimada
Keyword(s):  
Renewable Energy ◽  
Electric Power ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
Market Liquidity ◽  
Market Model ◽  
Forward Markets ◽  
Power Exchange ◽  
Trading Model ◽  
Speculative Trading

Renewable energy sources produce less environmental impact and have little marginal cost. Thus, because of these characteristics, it is desirable to disseminate it for the purpose of economic efficiency. Because of the uncertainty in the supply of renewable energy and the special feature of electricity as a good, such as merit order curve, introducing forward markets is an essential factor in a liberalized market. In European countries, which have already established several mechanisms for managing liquidity including markets with several timelines, the market liquidity invites the investor to perform some speculative action. We present a simple electric power market model to analyze the speculative actions of electricity suppliers and the price effect of such actions. Moreover, we found that the speculative action improves the inelasticity of the demand in electricity market.

scholarly journals Do Benefits from Dynamic Tariffing Rise? Welfare Effects of Real-Time Retail Pricing Under Carbon Taxation and Variable Renewable Electricity Supply

2019 ◽  
Vol 75 (1) ◽  
pp. 183-213
Author(s):  
Christian Gambardella ◽  
Michael Pahle ◽  
Wolf-Peter Schill
Keyword(s):  
Real Time ◽  
Electricity Markets ◽  
Electricity Market ◽  
Wholesale Price ◽  
Price Volatility ◽  
Market Model ◽  
High Carbon ◽  
Welfare Gains ◽  
Retail Pricing ◽  
Carbon Taxation

AbstractWe analyze the gross welfare gains from real-time retail pricing in electricity markets where carbon taxation induces investment in variable renewable technologies. Applying a stylized numerical electricity market model, we find a U-shaped association between carbon taxation and gross welfare gains. The benefits of introducing real-time pricing can accordingly be relatively low at relatively high carbon taxes and vice versa. The non-monotonous change in welfare gains can be explained by corresponding changes in the inefficiency arising from “under-consumption” during low-price periods rather than by changes in wholesale price volatility. Our results may cast doubt on the efficiency of ongoing roll-outs of advanced meters in many electricity markets, since net benefits might only materialize at relatively high carbon tax levels and renewable supply shares.

scholarly journals Effects of a Delayed Expansion of Interconnector Capacities in a High RES-E European Electricity System

Energies ◽  
2019 ◽  
Vol 12 (16) ◽  
pp. 3098
Author(s):  
Ritter ◽  
Meyer ◽  
Koch ◽  
Haller ◽  
Bauknecht ◽  
...  
Keyword(s):  
Co2 Emissions ◽  
Electricity Market ◽  
Electricity Generation ◽  
Power Plants ◽  
Energy Transition ◽  
Market Model ◽  
Electricity Trading ◽  
Electricity System ◽  
System A ◽  
The Impact

In order to achieve a high renewable share in the electricity system, a significant expansion of cross-border exchange capacities is planned. Historically, the actual expansion of interconnector capacities has significantly lagged behind the planned expansion. This study examines the impact that such continued delays would have when compared to a strong interconnector expansion in an ambitious energy transition scenario. For this purpose, scenarios for the years 2030, 2040, and 2050 are examined using the electricity market model PowerFlex EU. The analysis reveals that both CO2 emissions and variable costs of electricity generation increase if interconnector expansion is delayed. This effect is most significant in the scenario year 2050, where lower connectivity leads roughly to a doubling of both CO2 emissions and variable costs of electricity generation. This increase results from a lower level of European electricity trading, a curtailment of electricity from a renewable energy source (RES-E), and a corresponding higher level of conventional electricity generation. Most notably, in Southern and Central Europe, less interconnection leads to higher use of natural gas power plants since less renewable electricity from Northern Europe can be integrated into the European grid.

scholarly journals Identification of the Efficiency Gap by Coupling a Fundamental Electricity Market Model and an Agent-Based Simulation Model

Energies ◽  
2020 ◽  
Vol 13 (15) ◽  
pp. 3920
Author(s):  
Laura Torralba-Díaz ◽  
Christoph Schimeczek ◽  
Matthias Reeg ◽  
Georgios Savvidis ◽  
Marc Deissenroth-Uhrig ◽  
...  
Keyword(s):  
Simulation Model ◽  
Electricity Market ◽  
Policy Instruments ◽  
Cost Effective ◽  
Market Model ◽  
Perfect Competition ◽  
Agent Based Simulation ◽  
Agent Based ◽  
Target States ◽  
Efficiency Gap

A reliable and cost-effective electricity system transition requires both the identification of optimal target states and the definition of political and regulatory frameworks that enable these target states to be achieved. Fundamental optimization models are frequently used for the determination of cost-optimal system configurations. They represent a normative approach and typically assume markets with perfect competition. However, it is well known that real systems do not behave in such an optimal way, as decision-makers do not have perfect information at their disposal and real market actors do not take decisions in a purely rational way. These deficiencies lead to increased costs or missed targets, often referred to as an “efficiency gap”. For making rational political decisions, it might be valuable to know which factors influence this efficiency gap and to what extent. In this paper, we identify and quantify this gap by soft-linking a fundamental electricity market model and an agent-based simulation model, which allows the consideration of these effects. In order to distinguish between model-inherent differences and non-ideal market behavior, a rigorous harmonization of the models was conducted first. The results of the comparative analysis show that the efficiency gap increases with higher renewable energy shares and that information deficits and policy instruments affect operational decisions of power market participants and resulting overall costs significantly.

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