18th International Conference on the European Energy Market - EEM22, Ljubljana (Slovenia). 13-15 septiembre 2022
Summary:
Fundamental electricity market models tend to underestimate the real market prices because they do not properly represent the real variable production cost of the generation units, nor the strategic markup that generation companies add to their costs to price the offered energy. This markup can increase bid prices above the marginal cost of the generation units, which may leave bids out of the market, decreasing the total cleared production, but increasing the final market price. This paper proposes a simple procedure, based on the real market outcomes, to estimate these markups and improve CEVESA MIBEL market model by reducing the gap between the simulated and the real market prices.
Spanish layman's summary:
CEVESA es un modelo de equilibrio hidrotérmico para el despacho de energía y reserva secundaria para el MIBEL. Como modelo fundamental tiende a infravalorar los precios de mercado. Se propone un procedimiento de calibración de los precios a través de hibridación con modelos numéricos.
English layman's summary:
CEVESA is a hydrothermal equilibrium model for energy and secondary reserve dispatches for MIBEL. As a fundamental model it tends to undervalue market prices. A price calibration procedure is proposed through hybridization with numerical models.
Keywords: Iberian electricity market, electricity price markup, hybrid market models.
DOI: 
https://doi.org/10.1109/EEM54602.2022.9921028
Publication date: September 2022.
Citation:
Rodrigues de Oliveira, A., Navega, V., Villar, J., Tomé Saraiva, J.P., Campos, F.A., Hybridization of CEVESA MIBEL market model based on market outcomes, 18th International Conference on the European Energy Market - EEM22, Ljubljana (Slovenia). 13-15 September 2022.
IIT-22-243C
