The Electricity Sector Simulation Model
In this chapter, a realistic model of the German wholesale power and emissions trad ing markets is described. The adaptive agents that represent electricity generators in this model implement the reinforcement learning algorithms that have performed best in the analysis conducted in the preceding chapter.
In Sect. 5.1, the overall structure of the model and the agent behavior are pre sented in detail. In a next step, it is tested whether the model applying the chosen learning algorithms is able to reproduce stylized facts observed at real-world elec tricity and CO2 allowance markets in Germany (Sect. 5.2.1). A sensitivity analysis (Sect. 5.2.2) gives further information about the most important factors influenc ing simulation results. With the validated model, simulation runs with well defined market design scenarios are then carried out. Results from these simulations help to answer the research questions treated in this work; these are presented in Chap. 6.
KeywordsEmission Trading Electricity Market Reference Scenario Bidding Strategy Emission Allowance
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