Modeling the northern European electricity market

In this paper we present the methodology of a market model simulating the European day-ahead, intraday and real-time power markets. In a first step the day ahead market is modeled as a common European market including a simultaneous reserve procurement for northern Europe. Secondly, the intra-day market is simulated using the day ahead market results as an input. To reflect the current state of the system, the intraday market is restricted to the Central Western European (CWE) and the Nordic area. The scheduled day ahead dispatch is successively adjusted based on a continues revision of load and wind power forecasts. In a last step, the balancing market is modeled as a real time power dispatch on the basis of intraday market results and remaining deviations. Transfer capacities, start-up costs, technical constraints of thermal power plants in combination with a high resolution wind power model are used as a data basis for the model.