Modeling Energy Production System

Abstract

In this chapter, we derive one of the various ways to model the energy production system. The main motivation to choose this specific modeling approach is our goal of analyzing the energy market in a forward-looking sense. Especially, we want to include into the model the main characteristics of the future demand-side managements. We do this by including into the model the Real-Time Pricing (RTP) mechanism of the energy market. The supply side of the markets is first constructed by using one representative technology in order to describe the main features of the model. It is then enlarged by constructing production system technology by a technology such that the long-run equilibrium of the market can be reached. The model constructed in this chapter is used later in this book in various simulation applications. © Springer-Verlag London 2012.