Tools for the Design and Modelling of New Markets and Negotiation Mechanisms for a ~100% Renewable European Power System
Credit:
EU
The TradeRES project will develop and test innovative electricity market designs that can meet society’s needs of a (near) 100% renewable power system. A long-term sustainable market design needs to provide efficient operational and investment incentives for an electricity system that is characterized by a high share of variable renewable energy sources (VREs) by increasing integration with other energy sectors, e.g. transport and hydrogen, and by increasing participation of flexible electricity demand from households to industrial consumers. Furthermore, this market design needs to provide security of supply by ensuring sufficient controllable electricity generation capacity. Finally, despite the variability of solar and wind energy, the market risks should be allocated in an efficient and socially accepted way. This should also safeguard that consumers are not exposed to extreme swings in their energy expenses.
Research project TradeRES
Duration
February 2020 to January 2024
Funded by
European Union/Horizon 2020
Project participants
National Laboratory of Energy and Geology (LNEG)
Institute of Networked Energy Systems
Nederlandse Organisatie voor toegepast-natuurwetenschappelijk onderzoek (TNO)
Smartwatt
Energie Baden-Württemberg Ag (EnBW)
Instituto Superior de Engenharia do Porto (isep)
Technische Universität Delft
bitYoga
Technisches Forschungzentrum Finnland (VTT)
TradeRES aims at finding market designs that are economically efficient in the above setting. The designs will be tested in a sophisticated simulation environment in which real-world characteristics such as actors’ limited foresight into the future and risk aversion are included. Performance of the market design – with respect to quantitative indicators such as security of supply, average costs to consumers and investment cost recovery - will be compared to benchmark results based on centrally optimized power systems. The project involves representatives of all key stakeholder groups – consumers, large and small power generators, network operators and government – in order to maximize the acceptance of the research process and outcomes.
The TradeRES project is funded by the EU framework programme for research and innovation Horizon 2020 under the call H2020-LC-SC3-2019-ES-SCC.
DLR is mainly responsible for coordinating the development of an open-access market simulation framework for the analysis of renewable dominated energy markets. To this end, existing market models of the project consortium are adapted to enhance temporal, spatial and sectoral flexibility; then the implementation of new actors, markets and policy options in market models takes place. This also includes the corresponding further development of the agent-based electricity market model AMIRIS of DLR. Finally, the individual models will be integrated into an open-access market model toolbox.
Furthermore, DLR is involved in the development of market designs and indicators for their evaluation. Finally, DLR applies the developed market model toolbox in two case studies - for the German electricity market and for local energy communities. The aim is to assess proposed market designs in a specific context, and to iteratively improve these market designs.
