Elmar: model of the European electricity market

The model describes the European electricity market at a fairly high aggregation level, distinguishing between two regions (The Netherlands and other Western Europe), two types of users (large and small) and five production techniques (coal-fired, gas-fired, nuclear, large scale hydro and other renewables). Using a conjectural variations approach, the model simulates optimal output and capacity equilibria for both regions.

See the publication of the model. For those interested in the fine details of the model: see the actual computer files used to run the model.

Related CPB publications, containing applications:

• "Capacity to spare? A cost-benefit approach to optimal spare capacity in electricity production" CPB Document 60
• "Energy Policies and Risks on Energy Markets: a cost-benefit analysis" Special Publication 51
• "Increasing the reliability of electricity production: a cost-benefit analysis" CPB Document 52

For more information, contact Rob Aalbers