Tri-Level Calculation Model to Analyze Day-Ahead Electricity Market Clearing Prices in Finland

Abstract

The price of energy plays a central role in the economy, while the electrification of society is progressing rapidly. The price of electricity in Europe is determined in the common electricity market. There are clear research needs to study the effects of various changes on electricity prices. However, these effects cannot be studied solely by examining the day-ahead (DA) market bid curves of the studied area, because cross-border transmission connections play a significant role in determining DA prices. Additionally, it is not possible to replicate the EUPHEMIA used in simultaneously determining the price over whole Europe because the algorithm is open only for the nominated energy market operators (NEMO) and accurate zonal bidding curves are not available even for research use. This paper presents a novel tri-level model that can be used to study the effects of various changes on the DA electricity price, especially in the Finnish market environment.