Market simulator paves the way for better investment decisions in the electricity market

When deciding on future investments in the electricity market, complex data and market mechanisms are often the best choice.

Here, the Power Market Simulator (PMS) offers a solution that helps technology developers, project developers, energy traders and companies understand the electricity market and make more precise and sustainable decisions in the green transition.

PMS is also a tool that allows universities and course providers to give their students/course participants hands-on experience with the electricity market.

Scientifically validated and easy to use
The market simulator was developed in the project “further development and verification of the market simulator” in a collaboration between researchers from IMADA at the University of Southern Denmark, the Strategy Room and Danish Energy Economics.

The simulator has been upgraded with Power Transfer Distribution Factors (PTDF), which are on their way to being used for optimizing the electricity market in the EU’s Day-Ahead markets. The model has been tested against the recognized tool Gurobi and documents both high accuracy and efficiency.

“We have created a tool that makes it easier for companies and researchers to navigate the complex electricity markets,” says Flemming Nissen, consultant at Strategirummet. “With PMS, users can make informed decisions, which is crucial to driving the green transition forward.”

At the same time, PMS is designed to be user-friendly and easily accessible for both beginners and experts. The simulator provides access to extensive data sets from sources such as Enerdata and ENTSO-E, so users can quickly perform precise analyses and simulations without spending months collecting data.

A tool for everyone in the green transition
PMS is aimed at a broad target group: from students and teachers to project developers and larger energy companies. The simulator can help with everything from learning about the market to advanced analyses that can increase the knowledge base about future electricity prices and contribute to better investment decisions.

“We have made it easy to get started. PMS is available via a website where users can quickly adapt data to their specific needs. This makes the tool relevant for both education and commercial actors,” says Flemming Nissen from Strategirummet.

Facts about the project
The project “Further development and verification of the market simulator” is facilitated by Energy Cluster Denmark and funded by the EU and the Danish Business Development Agency. The partners in the project are IMADA at the University of Southern Denmark, Strategirummet and Danish Energy Economics.