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Optimal capacity adjustments in electricity market models – an iterative approach based on operational margins and the relevant supply stack

Author

Listed:
  • Benjamin Böcker

    ()

  • Robin Leisen

    ()

  • Christoph Weber

    () (House of Energy Markets and Finance, University of Duisburg-Essen (Campus Essen))

Abstract

The modelling of energy systems often has to balance two aspects. High level of detail, e.g. technical constraints on the one hand and analysis of long-term system optimization on the other. When focusing on one of the two aspects, models can be solved in a reasonable time. In order to combine both aspects in one model we use a problem-specific iterative approach. A detailed system model is linked to iterative adjustments of investments. This is based on a subgradient method of optimization. The approach can be described as a detailed dispatch model with adjustments towards an investment model. The results show that the algorithm is quite efficient for a stylized model. For a larger model, performance is not yet sufficient for day-to-day practical use, but several elements for further improvement are identified.

Suggested Citation

  • Benjamin Böcker & Robin Leisen & Christoph Weber, "undated". "Optimal capacity adjustments in electricity market models – an iterative approach based on operational margins and the relevant supply stack," EWL Working Papers 1806, University of Duisburg-Essen, Chair for Management Science and Energy Economics.
  • Handle: RePEc:dui:wpaper:1806
    as

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    References listed on IDEAS

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    1. repec:eee:enepol:v:125:y:2019:i:c:p:503-520 is not listed on IDEAS
    2. van der Weijde, Adriaan Hendrik & Hobbs, Benjamin F., 2012. "The economics of planning electricity transmission to accommodate renewables: Using two-stage optimisation to evaluate flexibility and the cost of disregarding uncertainty," Energy Economics, Elsevier, vol. 34(6), pages 2089-2101.
    3. Jeremy A. Bloom, 1983. "Solving an Electricity Generating Capacity Expansion Planning Problem by Generalized Benders' Decomposition," Operations Research, INFORMS, vol. 31(1), pages 84-100, February.
    4. Clemens Gerbaulet & Casimir Lorenz, 2017. "dynELMOD: A Dynamic Investment and Dispatch Model for the Future European Electricity Market," Data Documentation 88, DIW Berlin, German Institute for Economic Research.
    5. Tuohy, Aidan & Meibom, Peter & Denny, Eleanor & O'Malley, Mark, 2009. "Unit commitment for systems with significant wind penetration," MPRA Paper 34849, University Library of Munich, Germany.
    6. Richard Loulou & Maryse Labriet, 2008. "ETSAP-TIAM: the TIMES integrated assessment model Part I: Model structure," Computational Management Science, Springer, vol. 5(1), pages 7-40, February.
    7. Richard Loulou, 2008. "ETSAP-TIAM: the TIMES integrated assessment model. part II: mathematical formulation," Computational Management Science, Springer, vol. 5(1), pages 41-66, February.
    8. Spiecker, Stephan & Vogel, Philip & Weber, Christoph, 2013. "Evaluating interconnector investments in the north European electricity system considering fluctuating wind power penetration," Energy Economics, Elsevier, vol. 37(C), pages 114-127.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    energy system modelling; investment;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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