About the Need of Combining Power Market and Power Grid Model Results for Future Energy System Scenarios

An Efficient Framework to Estimate the State of Charge Profiles of Hydro Units for Large-Scale Zonal and Nodal Pricing Models

“…Equation ( 13) is the objective function, where the overall costs of generating power from generators and storage units are minimized. The power balance in Equation (14) ensures that for all times t, all power consumed by demands D(z) at zone z equals the sum of all power generated from generators Ĝ(z), the net power output of storage units Ŝ(z), and the sum of flows F zy,t going into zone z from adjacent zones y ∈ Z(z). Equation (15) ensures that imports F zy,t to zone z from zone y equal exports F yz,t from zone z to zone y.…”

“…[13] find that a country such as Germany with a diverse supply and demand structure can benefit from keeping a zonal pricing scheme, as it helps them maintain a relatively low electricity price level throughout the entire country. The need to combine market and grid models in order to perform studies that can assess the increased integration of renewable energy sources (RESs) into the electricity system is stressed in [14]. When exploring future scenarios for the power system, the market perspective can only be a starting point, as especially grid extension and operational issues will play a vital role in the future evolution of the system.…”

“…In order to calculate LMPs, one has to solve a large optimization problem. We formulate the problem as an economic dispatch model [14,[32][33][34][35][36], which in its full formulation reads:…”