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1381. Modeling and solving the first pan-European Guarantees of Origin market with Artelys Knitro

Invited abstract in session MB-9: Electricity Market Design, stream Energy Markets.

Monday, 10:30-12:00
Room: 10 (building: 116)

Authors (first author is the speaker)

1. Stefania Pan
Artelys Italia
2. Michaël Gabay
Artelys

Abstract

Guarantees of origin (GOs) are a tool to trace and guarantee the renewable origin of electricity. Using GOs enable electricity suppliers to provide specific contracts to customers such as renewable energy contracts or even more specific contract such as German non-subsidized wind electricity. This also encourages investments in renewable energy technologies and provides an additional source of revenues for energy producers.
The European Power Exchange (EPEX SPOT) and European Energy Exchange (EEX) have launched in 2022 the first pan-European spot auction for GOs. GOs may differ in issuing country, production technology, subsidy schemes or production month. This auction is uncommon as it offers market participants with the option to bid for products which are either specific or generic, enabling purchasers to express precise requests, stimulate competition and create reliable price indices.
Artelys has worked closely with EPEX and EEX in the auction design and was in charge of the development of the market clearing engine. The algorithm has to ensure that various business rules are respected, and to strike the right balance between flexibility, complexity, fairness and intuitiveness. The algorithm objectives are to maximize the social welfare, the traded volume, and to compute all specific and generic market clearing prices. The problem consists in a multi-staged mathematical optimization algorithm which is solved using the state-of-the-art numerical solver Artelys Knitro.

Keywords

Status: accepted

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