In the project we implemented the certificate market in the EMPS model (no: Samkjøringsmodellen), which is commonly used for electricity market studies. The model includes a detailed statistical representation of climate variables, as well as a method for optimal handling of storages, which are important elements for short-term forecasting of the certificate market.
Research challenges in the project included:
- Application of the water-value method for a certificate storage
- Dynamic calculation of penalty for missing certificates during settlements
- Specification of end-value function for saved certificates if the horizon is before the planned end of the system
The project had the following phases:
- designing the functionality
- implementation, testing / case-studies
- documentation /publication
- preparation of final version of model