Project E-Market: European Electricity Market Integration under Mixed Configurations and Policy Rules
The E-Market project aims at the integration of European electricity markets under different market design schemes. European electricity markets have been designed and developed with a range of different design features in each country during the last 20 years, based on local restrictions, local
energy portfolio conditions and electricity deregulation processes. The current project focuses on the day-ahead electricity market. Within the project scope, a centralized market-splitting algorithm will be implemented in a Europe-wide level, with each national market respecting the standard constraints imposed by its own regulatory framework. The full set of block and complex orders for markets operating as Power Exchanges (PXs) will be integrated in the developed models. The solution of the problem will be attained through an iterative process (for handling the paradoxically accepted/rejected offers). The various solution methods will be compared and evaluated in terms of their computational efficiency and the feasibility of the attained results. Within the project scope, the Project Team has already implemented a model simulating all features of the solver “Euphemia”, which will be utilized for the coupling of all European day-ahead markets. The solution algorithm has been successfully tested with all offers that are submitted in European PXs and will be used for the simulations that will be performed during this project. In addition, the incorporation of the internal/zonal network constraints will be studied, as follows:
a) the full set of transmission constraints will be added to the problem which will be solved one-shot,
b) an iterative algorithm will be utilized, iterating between the optimization algorithm and DC power flows, for handling the intra-zonal transmission network and operating system constraints. Finally, an integrated software will be created for the simulation of electricity markets, and will be applied to the Pan-European power market in order to:
a) derive useful conclusions concerning the integration of the European power system market and the possibility of incorporating special energy products and market features,
b) examine the effect of day-ahead European market integration on the secure operation of the internal transmission network of each country, applying both DC and AC simulation models,
c) evaluate mixed pricing rules for the production and demand of electrical energy,
d) evaluate the implementation feasibility and efficiency for a “green” day-ahead electricity market, with combined optimization and clearing for all energy products, including the “green” power produced by Renewable Energy Sources (RES). The E-Market project is funded by the General Secretariat of Research and Technology (GSRT) - Hellenic Ministry of Education and Religious Affairs, Culture and Sports, in the context of the Action “ARISTEIA II”, under the Operational Program “Education and Lifelong Learning”, which is co-funded by the European Social Fund and Greek Funds. The E-Market project commenced on 06/02/2014 and will last for 17 months.
