Market Simulator Supported Power Trading

Innovative IT solutions to manipulate large quantities of data are crucial for power traders in today's competitive trading environment. Generally, two main approaches to extract information from available data are possible, statistical and fundamental. Paper presents fundamental approach of forecasting future spot power prices on interconnected power markets with internally developed Market Simulator. Market Simulator takes several inputs into account, such as forecasted load consumption, power plants parameters and cross-border transmission capacities, including flow-based coupled markets parameters. Minimization of power production costs, cross-border fees by optimal dispatch of power production and power flows results in power prices per individual price zone. Mixed integer linear programming on hourly granularity solves this problem.