Elastic electricity prices in the IMPEXP region

Ok, so you will be testing the elastic supply cost curve feature. Let me know how it goes. Embarrassed

Concerning timeslice-specific import/export prices, you can of course define such by using IRE_PRICE or FLO_COST/FLO_DELIV.  But with the elastic supply cost curve feature you cannot define elastic cost curves separately for each timeslice.  As it has been implemented now, the elastic cost curve is always based on the aggregate annual amount, with the base price at the base quantity, and elastic prices in both directions (see the formula on page 3 of the doc).  The implementation could, of course, be generalized to allow also timeslice-specific curves to be defined.

Note also that the elastic supply cost curve is always applied to the total production of the commodity in question.  Therefore, if you want it to be applied only to the amount imported or exported, you need to have a dedicated commodity assigned to the imported electricity and exported electricity.

Concerning electricity exports, for which you wish the price to decrease with quantity, that will automatically be the case, because the export price is a revenue (a negative cost) and the elastic cost will be a positive cost increasing with quantity. When the elastic cost is added to the export price, the sum will thus be a marginal revenue which is decreasing with quantity.


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Elastic electricity prices in the IMPEXP region - by Antti-L - 23-09-2013, 06:38 AM

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