Introduction of geometric, distributed lag demand into energy-process models

In this paper, we introduce the combination of an energy-process model with the geometric distributed lag demand, called the energy-GDL process model, as well as its solution technique. In an energy-GDL process model, the demand is represented by a function of the prices not only in the current time period but also in previous time periods, based on the geometric, distributed lag structure. The supply is a cost-minimizing linear process submodel. The software WATEMS-GDL (the GDL version of the Waterloo Energy Modelling System) is implemented for solving such a model. An example illustrating the procedure of modelling and equilibrium-seeking is given.