The objective of this project is to explore how markets can be designed and operated to support North Sea and wider EU energy transitions. To do so, it will develop mathematical models that move away from traditional central optimisation-based approaches to include the complexities of real-world gas, electricity and other energy markets, including imperfect competition, barriers to trade, neighbouring jurisdictions with different market mechanisms, etc. These models are likely to be (partial) equilibrium models, which can be cast as mathematical problems with equilibrium constraints (MPECs) or similar problems. These models, in conjunction with more qualitative analysis, can then be used to identify market designs and other policies, at national, North Sea region and European levels, that could increase the efficiency of cross-European networks and decrease the costs of renewable integration. They will also be compared to other modelling approaches used by other researchers in the network, including agent-based and large-scale optimisation models.
Planned secondments: Energy Research Centre of the Netherlands (ECN), Gasunie – the Dutch gas network operator, University of Groningen (the Netherlands).
Lead supervisor: dr. Harry van der Weijde, School of Engineering.