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A Mixed Integer Linear Programming Model to Regulate the Electricity Sector

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  • Polemis, Michael

Abstract

This paper introduces the concept of market design and make the distinction between the three different levels of market design such as industry structure, wholesale and marketplace design. We present a mixed-integer linear programming (MILP) 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 SMP curve is also non-linear. Lastly, given the simulations results, we provide the necessary policy implications for government officials, regulators and the rest of the marketers.

Suggested Citation

  • Polemis, Michael, 2018. "A Mixed Integer Linear Programming Model to Regulate the Electricity Sector," MPRA Paper 86282, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:86282
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    References listed on IDEAS

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    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.
    2. Downward, Anthony & Young, David & Zakeri, Golbon, 2016. "Electricity retail contracting under risk-aversion," European Journal of Operational Research, Elsevier, vol. 251(3), pages 846-859.
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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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    6. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S. & Georgiadis, Michael C. & Papaioannou, George & Dikaiakos, Christos, 2016. "A mid-term, market-based power systems planning model," Applied Energy, Elsevier, vol. 179(C), pages 17-35.
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    11. Koltsaklis, Nikolaos E. & Georgiadis, Michael C., 2015. "A multi-period, multi-regional generation expansion planning model incorporating unit commitment constraints," Applied Energy, Elsevier, vol. 158(C), pages 310-331.
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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; Mathematical programming.;
    All these keywords.

    JEL classification:

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

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