ELMOD - A Model of the European Electricity Market
Electricity Markets Working Paper No. WP-EM-00
29 Pages Posted: 22 Jul 2008
Date Written: July 22, 2008
This paper provides a description of ELMOD, a model of the European electricity market including both generation and the physical transmission network (DC Load Flow approach). The model was developed at the Chair of Energy Economics and Public Sector Management (EE2) at Dresden University of Technology in order to analyze various questions on market design, congestion management, and investment decisions, with a focus on Germany and Continental Europe. ELMOD is a bottom-up model combining electrical engineering and economics: its objective function is welfare maximization, subject to line flow, energy balance, and generation constraints. The model provides simulations on an hourly basis, taking into account variable demand, wind input, unit commitment, start-up costs, pump storage, and other details. We report selected study results using ELMOD.
Keywords: Electricity markets, Energy pricing, Network modeling
JEL Classification: D41, D61, L94
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