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Description

In the scope of this call for tenders, a market modelling software will be procured for the following transmission system operators: 50Hertz Transmission GmbH (hereinafter 50Hertz), TenneT TSO GmbH and TenneT TSO B.V. Market models have become a fundamental tool for the development and analyses of electricity systems and are applied in various areas. Their results are used — amongst others — for price forecasts, adequacy assessments, policy consulting, cost-benefit assessments of investment. In order to ensure a safe system operation in the long run, 50Hertz requires scenario analysis of the future development of the German and European electricity markets. For this type of analysis an appropriate market modelling software is being tendered. The market modelling software determines the optimal commitment of electricity generation units based on a total cost minimization under consideration of technical restrictions and economic parameters as well as demand side flexibilities in the different market regions in order to cover electricity load. Besides the — at least hourly — unit specific electricity generation, electricity exchanges between market regions and electricity prices are the result of the market simulation that usually covers a calendar year. The software shall be capable to represent adequately the current electricity market design (e.g. limits of cross market region electricity trade by so called ‘net transfer capacities’ and ‘flow-based market coupling’ as well as foreseeable future developments (e.g. increasing sector coupling power-gas-heat or flexible demand side options). Additionally, the market model should be applicable for fast and simplified market simulations in the framework of ‘system adequacy’-analysis. A market model is defined by several input parameters (such as demand time series, generation and storage capacities, or interconnector capacities between market areas) and constraints (such as the balance between energy supply and demand in all time steps). The focus of the market model should be on the electricity system, but interfaces to the heat and gas system should also be appropriately reflected. Based on the input parameters and constraints, the model determines the cost-optimal way to serve the final energy demand of the considered market areas. In order to ensure a user-friendly application of the market model, the modelling software comprises comprehensive data management, editing and evaluation functionalities in addition to the actual market model. The software is being tendered by 50Hertz Transmission GmbH for the elia group and TenneT TSO B.V. / Tennet TSO GmbH.

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