BEM (Bi-level electricity modeling) - Oligopolistic capacity expansion with subsequent market-bidding under transmission constraints
Within the Energy-Economy-Society (EES) research programme of the Swiss Federal Office of Energy, the Energy Economics Group at PSI in collaboration with the University of Zurich investigates the investment and market behavior of power utilities.
For the methodology, we use multilevel equilibrium market models of Nash-Cournot type. The first level is the investment of the players, and the second level is the market-exchange of electricity. Investigated issues comprise: Market power, Investment risk, risk-averse decision-making, and transmission constraints. The modeling is intended to be with real-world data; we consider the potential of large companies or of countries in Europe to exert market power. The market clearing is limited by transmission constraints, and players face different investment risks, such as regulatory uncertainty and stochastic fuel prices. The analysis may allow regulators to better design investment and market rules to ensure acceptable electricity prices for consumers.
Panos, E., Densing, M. (2018). The future development of the electricity prices in view of the implementation of the Paris Agreements in 2030: will the current trends prevail or reverse is ahead?, The 37th International Energy Workshop, Gothenburg, Sweden, 19-21 June 2018, Download Presentation
Densing, M., Panos, E. (2018). Electricity Market Prices under Long-Term Policy Scenarios, 41st International Association of Energy Economics (IAEE) International conference, Groningen, Netherlands, 10-13 June 2018, Download Presentation
Kober, T., Panos, E., Densing, M. Kannan, R. (2018). Zukünftige Rolle der Schweizer Wasserkraft im Gesamtenergiesystem, VSE Fachtagung “Zukunft der Wasserkraft", Olten, 27. June 2018, Program
Densing, M. (2017). Modeling of electricity markets and hydropower dispatch, SCCER - Supply of Electricity Annual Conference, Birmensdorf, Switzerland, 14-15 September 2017, Download Presentation
Densing, M., Panos, E., Schmedders K. (2017). Stochastic bi-level electricity market modeling, 2nd Workshop of SET-Nav WP10 Modelling Forum - Modelling of Risk and Uncertainty in Energy System, ETH, Zürich, Switzerland
Densing, M., Panos, E., Schmedders, K. (2015). Decision making in electricity markets: Bi-level games and stochastic programming, Energy Science Center Workshop, ETH Zurich, Switzerland, Presentation
Densing, M., Panos, E., Schmedders, K. (2015). Bilevel oligopolistic electricity market models: The case of Switzerland and surrounding countries, OR2015, Annual International Conference of the German Operations Research Society, Vienna, Austria
Densing M. (2015). Stochastic programming formulations of coherent multi-period risk measurement, 13th Swiss Operations Research Days, IBM Research, Zurich