Master Thesis – Energy Technology - 2018
This study examines the “Energy-Only” electricity market model as applied in Europe.
The “Energy-Only” model was studied theoretically and the reasoning of introducing strategic reserves in several European countries was analyzed. To evaluate the consequences of the main concerns towards the market model an “Energy-Only” simulator driven by running investment decisions in contrast to an optimization algorithm was developed.
Expectations about future establishment of subsidized wind power, an increased amount of fluctuating electricity production and uncertain prediction of the implementation of heat pumps and electric cars were found to have negative impact on the capacity adequacy. The introduction of market conditions and technical solutions to enable planned consumption reduction as a reaction to a price signal was found to reduce the consequences of introducing large amount of wind power. The internationally expressed concerns were found to be well founded.
This project has been made in collaboration with the Danish Transmission System Operator, Energinet