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Market Abstraction of Energy Markets and Policies - Application in an Agent-Based Modeling Toolbox

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Energy Informatics (EI.A 2023)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 14468))

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Abstract

In light of emerging challenges in energy systems, markets are prone to changing dynamics and market design. Simulation models are commonly used to understand the changing dynamics of future electricity markets. However, existing market models were often created with specific use cases in mind, which limits their flexibility and usability. This can impose challenges for using a single model to compare different market designs. This paper introduces a new method of defining market designs for energy market simulations. The proposed concept makes it easy to incorporate different market designs into electricity market models by using relevant parameters derived from analyzing existing simulation tools, morphological categorization and ontologies. These parameters are then used to derive a market abstraction and integrate it into an agent-based simulation framework, allowing for a unified analysis of diverse market designs. Furthermore, we showcase the usability of integrating new types of long-term contracts and over-the-counter trading. To validate this approach, two case studies are demonstrated: a pay-as-clear market and a pay-as-bid long-term market. These examples demonstrate the capabilities of the proposed framework.

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Acknowledgments

Kim K. Miskiw and Nick Harder thank the German Federal Ministry for Economic Affairs and Climate Action for the funding of the ASSUME project under grant number BMWK 03EI1052A.

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Authors and Affiliations

  1. University of Oldenburg, Oldenburg, Germany

    Florian Maurer, Rebeca Ramirez Acosta & Sebastian Lehnhoff

  2. University of Applied Sciences Aachen, Heinrich-Mußmann-Straße 1, 52428, Jülich, Germany

    Florian Maurer & Volker Sander

  3. IISM KIT, Karlsruhe, Germany

    Kim K. Miskiw

  4. INATECH, Freiburg, Germany

    Nick Harder

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  1. Florian Maurer
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Correspondence to Florian Maurer .

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  1. University of Southern Denmark, Odense, Denmark

    Bo Nørregaard Jørgensen

  2. University of Campinas, Campinas, São Paulo, Brazil

    Luiz Carlos Pereira da Silva

  3. University of Southern Denmark, Odense, Denmark

    Zheng Ma

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Maurer, F., Miskiw, K.K., Acosta, R.R., Harder, N., Sander, V., Lehnhoff, S. (2024). Market Abstraction of Energy Markets and Policies - Application in an Agent-Based Modeling Toolbox. In: Jørgensen, B.N., da Silva, L.C.P., Ma, Z. (eds) Energy Informatics. EI.A 2023. Lecture Notes in Computer Science, vol 14468. Springer, Cham. https://doi.org/10.1007/978-3-031-48652-4_10

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