Energy Market Model Competition: A Discrete Event System Simulation Equivalent

This paper presents two models of an integrated electricity and fuel markets. The first formulation is a closed form solution of the Cournot model represented by a set of linear equations. In reality, markets can reach a stable equilibrium or fail. Therefore, it is important to observe how they behave in a dynamic framework. The second formulation is an equivalent of the first in a discrete event system simulation (DESS) framework. The main advantage when formulating the energy market by using DESS is the possibility to study market dynamics. Both formulations clear the markets simultaneously. Numerical examples are provided.