The primary goal is to utilize models, market simulations and existing literature and data to provide information about future market products, prices and structures used in revenue calculations and investment analysis.

Secondary, the objective is to develop a set of scenarios that can be used in analyses. The scenarios should consist of simultaneous market prices for day-ahead, intraday and balancing market prices and a qualitative description, giving the reason for the represented price characteristics (important drivers and requirements).

Value potential

This project makes price inputs to other projects within the work package. This information will be used to focus model development and technical innovations in the correct direction and is therefore important for the overall goal which is to develop concepts, methods and prototypes that will make the utilities able to make better founded investment decisions. This is beneficial for the specific utilities and for the whole society.

Will combine modeling with scenario studies

To simulate future operation, calculate revenues and evaluate environmental consequences, stochastic price models for all the different products are needed. Stochastic modelling is typically not included in more high-level scenario studies but is important for detailed studies of individual hydro systems. 

Of course, it is not known with certainty what the future products will be, but one could assume some generic type products (e.g. capacity, energy and short-term balancing) which each has different prices. SINTEF was in 2017 granted a research project, PriBas that addresses this problem from a fundamental modelling point of view. PriBas will give important input to the whole WP and this project in particular.