Modelling the new balancing regime of the natural gas market in the Netherlands

The functioning of the new balancing regime of the natural gas market in the Netherlands is explored using an agent-based model. The operation of the new regime is simulated to determine the total imbalance of the gas system, the participants cash flows and the price emerging in the balancing market. Calculating the progression of these variables allows for an ex-ante assessment of the efficiency of the incentive scheme proposed by the new balancing regime and its social cost. Through such modeling and simulation a good understanding of the consequences of the new regime is obtained. The agent-based model design allows for future enhancements to address a broader set of research questions related the operation of the liberalized Dutch gas market.