Electrifying models
The complex dynamics of the energy market are ever changing, requiring smarter research, analysis and evaluation to ensure it remains healthy. The EU-funded project 'Modelling market interaction' (MMI) strove to study and model markets as complex adaptive systems based on collective rationality rather than that of individuals. The project aimed to enhance economic knowledge about energy and perishable goods markets through advanced mathematical and computational economics, in addition to empirical and experimental studies. It sought to develop an agent-based software framework for modelling and studying real electricity markets. MMI successfully developed and tested a viable agent-based software platform to model and examine the electricity market, focusing on the liberalised sector of production. It exploited an agent-based computational approach and intensive research in experimental economics to broaden the understanding of rationality models. This reveals how a strong internal energy market can support sustainable and affordable energy supply in Europe. The internal electricity market simulator can help private and public institutions evaluate relevant policies and has already piqued the interest of such organisations, including consulting companies and energy operators. Ongoing activities with involved institutions and key players from the private sector could, for example, examine the effect on market performance of large investments in renewable technologies. The project's outcomes have been distributed among stakeholders through publications, conferences, seminars and workshops, bringing promising improvements to the multi-faceted energy market and its policies.
