Sistem, a model for the simulation of short-term electricity markets

Authors

Sébastien, Mathieu, Marie Petitet, Marie Perrot, Damien Ernst, Yannick Phulpin

Abstract

The aim of this document is to present SiSTEM, a multi-level simulation model of European short- term electricity markets, covering day-ahead and intraday exchanges to balancing activations in real-time, and imbalance se1lement. In this model, power companies interact by making o?ers, no- tifying their positions to the system operator and impacting the balance of the electric system. The system operator activates balancing energy to restore the balance of the system, using all balanc- ing activation o?ers, including from balancing reserves. Imbalance se1lement implies bidirectional transactions between the system operator and power companies depending on the direction of their imbalance. A simulation of the model is performed by sequentially considering each time step and simulating actors’ decisions. The objective of this model is to understand the problems behind decisions of the actors within the short-term electrical system operation, to provide insights on how these problems can be solved through market design and to see how the decisions are linked together to shape a coherent system. This paper presents di?erent simulation cases of an illustrative system in order to portray main fea- tures of the model in a practical and e?ective manner. In particular, the results show the importance of considering steady-state constraints and notice delays of generation units when looking at short- term issues. Future works could use this model to provide quantitative assessments of short-term market designs.