Agent-based Model for Spot and Balancing Electricity Markets

TL;DR

This paper introduces an agent-based model that simulates both spot and balancing electricity markets with high temporal resolution, providing a realistic depiction of power grid dynamics and validating it against Nord Pool data.

Contribution

The paper presents a novel integrated agent-based model combining spot and balancing markets with one-minute resolution, improving realism in power grid simulations.

Findings

Model closely matches Nord Pool market data

Captures physical properties of the power grid

Provides a tool for market analysis and policy testing

Abstract

We present a simple, yet realistic, agent-based model of an electricity market. The proposed model combines the spot and balancing markets with a resolution of one minute, which enables a more accurate depiction of the physical properties of the power grid. As a test, we compare the results obtained from our simulation to data from Nord Pool.