Elastic electricity prices in the IMPEXP region
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Pernille.S Wrote:I would like to model the electricity price of the import and export to depend on the quantities that are traded. Is this possible to model with the ELAS parameter? If yes, does it exist a test model where this is illustrated? Have anybody done this? Do I need to base the reference prices on a reference run or can I set the reference prices and reference quantity outside the model?
 There is no ELAS parameter in TIMES, but you can use the damage cost facility to model elastic supply cost curves, as described in the document http://www.iea-etsap.org/docs/Elastic-Supply-Curves.pdf. The support for elastic supply cost curves was added into TIMES on Denise's request in 2010, and should be considered an experimental feature.

If you don't want to use the automatic transfer of reference prices and quantities from a Baseline run, you can also define the elastic supply costs manually, as described in the document. You only need to define the costs to be applied to the commodity production, by specifying DAM_ELAST(r,c,'N') to be either EPS or -1, depending whether you want the additional costs to be shifted of not. Otherwise the manual specification would be similar to normal damage cost specification.

A notable limitation is that you cannot define timeslice-specific elastic cost curves.  There is no test model publicly available, but the document contains a worked example (based on the automatic transfer of Base prices and quantities).

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Elastic electricity prices in the IMPEXP region - by Antti-L - 18-09-2013, 05:34 AM

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