Faculty Steven A. Gabriel
, Trine Krogh Boomsma, Antonio Conejo
Independent Research Fund Denmark
This $453K energy markets project aims to help the country of Denmark in its goal of transitioning from fossil fuels to renewable energy.
To do this, the country is looking to coordinate cross-sectoral planning in its electricity, heating and gas systems. Professor Gabriel mentions that “Looking at the coupling of these three systems will lead to improvements in efficiency, increase the use of renewable energy, enable additional flexibility to deal with fluctuations in production, and contribute to sustainability and security of supply. This is because the equilibrium models to be developed will be holistic in their purview rather than focused solely on one of these systems at a time”. The new project will provide tools needed to aid the transition to a cleaner energy future.
The project will assess the potential for sectoral coupling within a quantitative framework that includes both a technical description of each sector and takes into account market-based interactions between the sectors, including different objectives and inter-competitive conditions. The researchers will develop new models and methods for consolidating the technical and economic aspects.
Planning and optimizing operations and investment will be modeled. Also taken into account will be technical characteristics, establishing equilibrium models for market interactions, and designing policy incentive structures to promote coordinated planning. Given the complexity of the models, an important part of the project will also involve the development of specially adapted solution methods.