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

Benjamin Böcker (), Robin Leisen () and Christoph Weber ()
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Christoph Weber: House of Energy Markets and Finance, University of Duisburg-Essen (Campus Essen)

EWL Working Papers from University of Duisburg-Essen, Chair for Management Science and Energy Economics

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.

Keywords: energy system modelling; investment (search for similar items in EconPapers)
JEL-codes: Q40 Q48 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:dui:wpaper:1806

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