19th International Conference on the European Energy Market - EEM23, Lappeenranta (Finland). 06-08 June 2023
Summary:
This paper presents a new hybridization approach to improve CEVESA, a multi-zonal hydro-thermal equilibrium model for the joint dispatch of energy and secondary reserve capacity for the Iberian Electricity Market (MIBEL). Like similar fundamental models, CEVESA provides market prices that typically show an average systematic bias compared to real market prices. This is because these models do not always capture the true variable production costs of the generation units or the additional markups that generation companies may include in their pricing strategy. Based on real market outcomes, this paper proposes a new methodology built on a previous hybridization approach that estimated a constant monthly markup per thermal offering unit [1]. This new methodology is based on a functional estimation of the offering unit cost (or bidding price), using as input the initial CEVESA production costs based on the fuel and emissions commodities’ prices, correcting the power plants’ markup.
Spanish layman's summary:
Este trabajo presenta un nuevo enfoque de hibridación para mejorar el modelo de equilibrio multizonal hidrotérmico CEVESA, que se basa en la estimación de los precios ofertadas por las unidades de oferta, corrigiendo el markup de las ofertas y las eficiencias de las plantas de generación.
English layman's summary:
This paper presents a new hybridization approach to improve CEVESA, a multi-zonal hydro-thermal equilibrium model based on a functional estimation of the offering unit cost (or bidding price), correcting not only the markup but also the power plant efficiencies.
Keywords: Iberian electricity market, electricity price markup, hybrid market models.
DOI: 
https://doi.org/10.1109/EEM58374.2023.10161756
Published in IEEE EEM 2023, pp: 1-6, ISBN: 979-8-3503-2452-5
Publication date: 2023-07-03.
Citation:
A. Rodrigues de Oliveira, J. Villar, J.P. Tomé Saraiva, F.A. Campos, Improved hybridization of CEVESA MIBEL market model based on real market data, 19th International Conference on the European Energy Market - EEM23, Lappeenranta (Finland). 06-08 June 2023. In: IEEE EEM 2023: Conference proceedings, ISBN: 979-8-3503-2452-5
