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Title:
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ELMA: model of a liberalized electricity market
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Author(s):
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Published by:
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Publication date:
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ECN
Policy Studies
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1998
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ECN report number:
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Document type:
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ECN-I--97-028
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ECN publication
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Number of pages:
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Full text:
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90
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Download PDF
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Abstract:
In the current electricity market in the European Union an ongoing trendof liberalization takes place. At the business unit Policy Studies of the
Netherlands Energy Research Foundation the project 'Liberalization and
Deregulation in Electricity Markets' is started, with the purpose of
conducting a research into the motives and the impact of the liberalization
of the electricity market in Western Europe. The ELMA-model was developed to
quantitatively analyze the effects of this trend of liberalization. The model
constitutes an open market framework where several regulation measures, e.g.
price regulation, emission bounds and regulation of investments can be
analyzed. ELMA is an integrated model that consists of three submodels, that
together constitute the market. The model has periodical optimizations, where
in each five-year period the three submodels are optimized successively. In
the first submodel base load and peak load electricity is traded in an
international market by means of five-year contracts. In the second submodel,
electricity production costs are minimized by all producers individually. In
the final submodel, all producers are enabled to make investments. These
investments are based on expected developments in electricity demand and fuel
prices. The time horizon of the model is 2025. The model is implemented for
Belgium, France, Germany and the Netherlands. For each of these countries
different institutional systems can be analyzed. This can be done by varying
the number of electricity producers and adjusting the extent of regulation.
Other countries can easily be added to the model. The mathematical modeling
language AIMMS was used to implement the model. This report contains a
comprehensive mathematical description of the model and its features. It is
also a user's guide for ECN-employees who will work with the ELMA-model. 21
refs.
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