Agent-Based Simulation of Interrelated Wholesale Electricity Markets

In recent years, the increasing electricity generation from fluctuating renewable energy sources has created quite different challenges faced by operators of conventional power plants in the short and long run. In the dynamic and complex environment of electricity markets, model-based analysis can provide valuable support for decision makers. In this paper, a detailed agent-based simulation model is presented. Agent-based simulation as one particular modeling approach is especially suitable for modeling wholesale electricity markets with market participants making individual decisions on interrelated markets. The presented model is able to simulate wholesale electricity markets including relevant interrelations with respect to time and point of delivery of electrical energy. Long-term developments can be analyzed using an integrated investment module for generation capacity by supply agents. Two recent model extensions, namely the implementation of a market coupling algorithm and of an intraday market, and their exemplary applications are illustrated in the paper.