Advertisement

Agent-Based Simulation of Interconnected Wholesale Electricity Markets: An Application to the German and French Market Area

  • Andreas BublitzEmail author
  • Philipp Ringler
  • Massimo Genoese
  • Wolf Fichtner
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 8946)

Abstract

In the context of wholesale electricity markets, agent-based models have shown to be an appealing approach. Given its ability to adequately model interrelated markets with its main players and considering detailed data, agent-based models have already provided valuable insights in related research questions, e.g. about adequate regulatory frameworks. In this paper, an agent-based model with an application to the German and French market area is presented. The model is able to analyze short-term as well as long-term effects in electricity markets. It simulates the hourly day-ahead market with limited interconnection capacities between the regarded market areas and determines the market outcome as well as the power plant dispatch. Yearly, each agent has the possibility to invest in new conventional capacities which e.g. allows assessing security of supply related questions in future years. Furthermore, the model can be used for participatory simulations where humans take the place of the models agents. In order to adapt to the ongoing changes in electricity markets, e.g. due to the rise of renewable energies and the integration of European electricity markets, the model is constantly developed further. Future extensions include amongst others the implementations of an intraday market as well as the integration of additional market areas.

Keywords

Agent-based simulation Economic agent models  Electricity markets Multi-agent systems 

References

  1. 1.
    APX-ENDEX, Belpex, EPEX Spot: COSMOS description – CWE Market Coupling algorithm (2010)Google Scholar
  2. 2.
    Barreteau, O., Bousquet, F., Attonaty, J.M.: Role-playing games for opening the black box of multi-agent systems: method and lessons of its application to Senegal river valley irrigated systems. J. Artif. Soc. Soc. Simul. 4(2), 5 (2001)Google Scholar
  3. 3.
    Boiteux, M.: Peak-load pricing. In: Nelson, J.R. (ed.) Marginal Cost Pricing in Practice. Prentice-Hall, Englewood Cliffs (1964)Google Scholar
  4. 4.
    EPEX Spot: Project Document: A report for the regulators of the Central West European (CWE) region on the final design of the market coupling solution in the region, by the CWE MC Project (2010). http://static.epexspot.com/document/7616/01_CWE_ATC_MC_project_documentation.pdf
  5. 5.
    Genoese, M.: Energiewirtschaftliche Analysen des deutschen Strommarkts mit agentenbasierter Simulation. Ph.D. thesis, Universität Karlsruhe (TH), Karlsruhe (2010)Google Scholar
  6. 6.
    Genoese, M., Fichtner, W.: PowerACE LAB: Experimentallabor Energiewirtschaft. Wirtschaftswissenschaftliches Studium 41(6), 338–342 (2012)Google Scholar
  7. 7.
    Genoese, M., Sensfuß, F., Möst, D., Rentz, O.: Agent-based analysis of the impact of CO\(_2\) emission trading on spot market prices for electricity in Germany. Pac. J. Optim. 3(3), 401–424 (2007)zbMATHGoogle Scholar
  8. 8.
    Guerci, E., Rastegar, M.A., Cincotti, S.: Agent-based modeling and simulation of competitive wholesale electricity markets. In: Rebennack, S., Pardalos, P.M., Pereira, M.V.F., Iliadis, N.A. (eds.) Handbook of Power Systems II, pp. 241–286. Springer, Heidelberg (2010)CrossRefGoogle Scholar
  9. 9.
    Guyot, P., Honiden, S.: Agent-based participatory simulations merging multi-agent systems and role-playing games. J. Artif. Soc. Soc. Simul. 9(4), 8 (2006). http://jasss.soc.surrey.ac.uk/9/4/8.html Google Scholar
  10. 10.
    Meeus, L., Vandezande, L., Cole, S., Belmans, R.: Market coupling and the importance of price coordination between power exchanges. Energy Econ. 34(3), 228–234 (2009)CrossRefGoogle Scholar
  11. 11.
    Sensfuß, F., Ragwitz, M., Genoese, M.: The merit-order effect: a detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany. Energy Policy 36(8), 3086–3094 (2008)CrossRefGoogle Scholar
  12. 12.
    Sensfuß, F., Ragwitz, M., Genoese, M., Möst, D.: Agent-based simulation of electricity markets - a literature review. Working Paper Sustainability and Innovation 5 (2007)Google Scholar
  13. 13.
    Tesfatsion, L.: Agent-based computational economics: a constructive approach to economic theory. In: Tesfatsion, L., Judd, K.L. (eds.) Handbook of Computational Economics: Agent-Based Computational Economics, pp. 831–880. North Holland, Elsevier (2006)Google Scholar
  14. 14.
    Ventosa, M., Ballo, I., Ramos, A., Rivier, M.: Electricity market modeling trends. Energy Policy 33(7), 897–913 (2005)CrossRefGoogle Scholar
  15. 15.
    Weidlich, A., Veit, D.J.: A critical survey of agent-based wholesale electricity market models. Energy Econ. 30(4), 1728–1759 (2008)CrossRefGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Andreas Bublitz
    • 1
    Email author
  • Philipp Ringler
    • 1
  • Massimo Genoese
    • 1
  • Wolf Fichtner
    • 1
  1. 1.Chair of Energy EconomicsKarlsruhe Institute of TechnologyKarlsruheGermany

Personalised recommendations