Developing a simulator for the Greek electricity market

Sakellaris, Kostis and Vlachos, Andreas and Perrakis, Kostis and Caramanis, Michael C. and Deb, Sidart (2008): Developing a simulator for the Greek electricity market.

Abstract

Following the liberalization of the Greek electricity market, the Greek Regulatory Authority for Energy (RAE) undertook the design and implementation of a simulator for the wholesale market and its interactions with the Natural Gas Transportation System. The simulator consists of several interacting modules representing all key market operations and dynamics including (i) day-ahead scheduling based on bids of market participants, (ii) natural gas system constraints, (iii) unplanned variability of loads and available capacity driven either by uncertain stochastic outcomes or deliberate participant schedule deviations, (iv) real time dispatch, and (v) financial settlement of day ahead and real time schedule differences. The modules are integrated into one software package capable of simulating all market dynamics, deliberate or probabilistic, and their interactions across all relevant time scales. The intended use of the simulator is to elaborate on and allow RAE to investigate the impact of participant decision strategies on market outcomes. The ultimate purpose is to evaluate the effectiveness of Market Rules, whether existing or contemplated, in providing incentives for competitive behaviour and in discouraging gaming and market manipulation. This paper describes the development of the simulator relative to the current Greek Electricity Market Design and key contemplated revisions.

• Item Type: MPRA Paper
• Language: English
• Keywords: simulation; regulatory policy; electricity markets; market design
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C63 - Computational Techniques ; Simulation Modeling; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities

References

Annual Report to the EC, RAE, 2005

Call for Tenders: “Development of Greek Electric Power and Natural Gas Systems Simulator Including Planning, Execution and Settlement of Short-Term Wholesale Markets”, RAE, May 2006, www.rae.gr

Grid and Market Operation Code (2005), www.rae.gr

LCG Consulting, www.energyonline.com

JC Passelergue, P.Simon, I. Blanas, M.Philippou, D. Michos, G. Christoforidis, “Market-based real-time dispatch in the Hellenic Power System”, IEEE Power Engineering Society General Meeting, Vol.1 996 – 1001,2004