Agent-based Simulation of Electricity Markets -A Literature Review-

  • Frank Sensuß Fraunhofer Institute for Systems and Innovation Research
  • Massimo Genoese Universität Karlsruhe (TH), Institute for Industrial Production,
  • Mario Ragwitz Fraunhofer Institute for Systems and Innovation Research,
  • Dominik Möst Universität Karlsruhe (TH), Institute for Industrial Production
Keywords: electricity markets, agent-based simulation, computational economics,

Abstract

Liberalisation, climate policy and promotion of renewable energy are challenges to players of the electricity sector in many countries. Policy makers have to consider issues like market power, bounded rationality of players and the appearance of fluctuating energy sources in order to provide adequate legislation. Furthermore the interactions between markets and environmental policy instruments become an issue of increasing importance. A promising approach for the scientific analysis of these developments is the field of agent-based simulation. The goal of this article is to provide an overview of the current work applying this methodology to the analysis of electricity markets.

Published
2007-10-01
Section
Articles