Implementing a more realistic modelisation in the ARES market power simulator model

Energinet.dk and RTE developed a common simulation tool, the ARES model, a supply function equilibrium model that simulates an integrated market of several zones with different prices interconnected by lines whose flows are restricted. However, this first model was facing two major difficulties: . a robustness problem: the complexity of the optimization problem was so high that the solver used was not able to solve it accurately; . a modelisation problem: when it came down to maximizing its own profit, each actor had a perfect knowledge of the other participants´ strategies. A new version of ARES has been developed, that tries to solve the two problems identified above. In this paper, we present the new modelisation implemented and test it on a simplified European network, where we see the impact of market players holding transmission rights on interconnections.