New methods for energy market modelling : Proceedings of the First European Workshop on Energy Market Modelling using Agent-Based Computational Economics [article]

D. Möst, W. Fichtner, M. Ragwitz, D. [Hrsg.] Veit
Preface Stakeholders in the electricity sector in many countries are facing challenges due to market liberalisation, climate policy and the promotion of renewable energy sources. The interaction between markets and environmental policy instruments is an issue of increasing importance. A promising approach for the scientific analysis of these developments is the field of agent-based simulation. Agent-based computational economics is a relatively young research paradigm that offers methods for
more » ... ulating energy markets. A growing number of researchers have developed agent-based models to simulate the development of energy markets in the light of the above mentioned challenges. The inspiration for organizing the first European workshop on Energy Market Modelling using Agent-Based Computational Economics (1. EMMACE workshop) came from the PowerACE project ( In this project, the following project partners carried out an agent-based simulation of the German power market: "energy system analysis and environment", Universität Karlsruhe (TH). As an associated partner the Chair of Energy Economics, Brandenburg University of Technology Cottbus was involved in the project. Within the project it became evident that agent-based simulation models were becoming increasingly popular amongst electricity market modellers. This development can be explained by the additional opportunities this modelling paradigm provides for the analysis of economic systems when compared to more traditional equilibrium or optimisation models. Aspects like learning effects in repeated interactions, asymmetric information, imperfect competition, or strategic interaction and collusion can be included in a more realistic way in agent-based models. As the field of energy market modelling with agent-based computational economics is very heterogeneous, the objective of the workshop was to bring together the different modellers and to learn about the potential of this valuable modelling approach in different fields of the energy market. The hungarian electrical energy sector -an agent based model 15 Analysis of strategic behaviour in combined electricity and gas market using agent-based computational Economics 113 Agend-based modeling of oligopolistic competition in the German electricity market 3 Summary. This paper reports results from an agent-based simulation model that comprises a day-ahead electricity market, a market for positive minute reserve and a carbon exchange for CO 2 emission allowances. Agents apply reinforcement learning and optimize trading strategies over the two electricity markets. Simulated results are closely similar to empirically observed prices at the German power markets in 2006. This makes the model applicable for analyzing different market designs in order to derive evidence for policy advice.
doi:10.5445/ksp/1000008067 fatcat:xpkncx4jbffdrbuojfdidgjh34