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A mixed integer linear programming model to regulate the electricity sector

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  • Michael L. Polemis

    (University of Piraeus
    Hellenic Competition Commission)

Abstract

This paper presents a mixed-integer linear programming model for the optimal long-term electricity planning of the Greek wholesale generation system. In order to capture more accurately the technical characteristics of the problem, we have divided the Greek territory into a number of individual interacted networks (geographical zones). In the next stage we solve the system of equations and provide simulation results for the daily/hourly energy prices based on the different scenarios adopted. The empirical findings reveal an inverted-M shaped curve for electricity demand in Greece, while the system marginal price curve also follows a non-linear pattern. Lastly, given the simulations results, we provide the necessary policy implications for government officials, regulators and the rest of the marketers.

Suggested Citation

  • Michael L. Polemis, 2018. "A mixed integer linear programming model to regulate the electricity sector," Letters in Spatial and Resource Sciences, Springer, vol. 11(2), pages 183-208, July.
    • Handle: RePEc:spr:lsprsc:v:11:y:2018:i:2:d:10.1007_s12076-018-0211-8
    DOI: 10.1007/s12076-018-0211-8
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    References listed on IDEAS

    as
    1. Dagoumas, Athanasios S. & Polemis, Michael L., 2017. "An integrated model for assessing electricity retailer’s profitability with demand response," Applied Energy, Elsevier, vol. 198(C), pages 49-64.
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    4. Polemis, Michael L. & Dagoumas, Athanasios S., 2013. "The electricity consumption and economic growth nexus: Evidence from Greece," Energy Policy, Elsevier, vol. 62(C), pages 798-808.
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    14. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S. & Kopanos, Georgios M. & Pistikopoulos, Efstratios N. & Georgiadis, Michael C., 2014. "A spatial multi-period long-term energy planning model: A case study of the Greek power system," Applied Energy, Elsevier, vol. 115(C), pages 456-482.
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    More about this item

    Keywords

    Electricity market; Linear programming; Constraints; Day-ahead scheduling; Greece;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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