Building an electricity market model from scratch
This presentation will introduce the audience to the fields of electricity market modelling and mathematical optimisation (MO).The talk will be comprised of three sections:
The first section will provide some background and context for the audience. We will describe what an electricity market is, how it functions, and the energy transition which is changing how we build and operate the grid. We will also provide some background on mathematical optimisation - how it works, and why it is the most common way to model energy markets.
In the second section, we will walk through how you build an optimisation model together. We will describe an extremely simple electrical grid, and show we can simulate the dispatch of power stations through a mathematical optimisation model. We will also explore some of the benefits of these models, including how electricity prices are generated by extracting the marginal value of constraints.
Finally, we will break down the core components of a mathematical optimisation model and discuss how this approach can be used to solve quantitative problems in many other sectors.
