Impact of market-coupling on electricity price modeling in fundamental unit-commitment approaches
preprintposted on 2020-03-21, 19:41 authored by Moritz NobisMoritz Nobis, Lothar Wyrwoll, Albert Moser, Stephan Raths
Fundamental unit commitment approaches are of central importance in energy system modeling for the generation of detailed power plant schedules. However, existing approaches, which reduce complexity in a multi-stage process, often fail to generate realistic electricity prices. A new type of single-stage approach considers market-coupling implicitly so that, in addition to detailed power plant schedules, electricity prices reflecting real prices very well can be generated. In this paper, we show in a back-test for 2014 that an endogenously modeled market-coupling is the driving factor for the quality of resulting electricity prices. Conversely, it can be concluded that conventional multi-stage approaches show a significant distortion of modeled electricity prices due to missing price signals from neighboring market zones. Against the background of expanding trading capacities between market zones within the European power system, this issue becomes increasingly relevant when fundamentally modeling energy prices.
Email Address of Submitting Authormoritz.firstname.lastname@example.org
ORCID of Submitting Author0000-0002-4426-6631
Submitting Author's InstitutionIAEW @ RWTH Aachen University
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