Energy Market Optimization

The Challenge

Energy Transition: the impact of renewable energy and digitalization.

The increase of renewables during the last few years has changed the energy market landscape and consumer behavior.

Our electricity system is at the transition from a centralized approach with large conventional power plants to a new system composed of decentralized units based on renewable energy. As these units are variable and uncertain in terms of production levels, the impact on the electricity system (e.g supply demand balance, congestion risk, adequacy…) becomes a real challenge!

New ways of optimizing market cooperation and grid operations are now essential to ensure sustainability and reliability as well as improving social welfare. Digitalization of market/system operators and therefore the greater availability of data is a real opportunity to reach a successful Energy Transition.

The Solution

The best of advanced analytics for your electricity market.

N-SIDE, as a key actor in the Energy market and expert in advanced analytics, has developed a range of algorithms to contribute to a better integration of electricity markets (Day-ahead, Intraday, Balancing, Reserve) at different dimensions:

Horizontal Integration – By the coupling of national markets at the European level. EUPHEMIA, developed by N-SIDE, is the official coupling algorithm for the European day-ahead markets, determining the spot prices and volumes for 23 countries.

Vertical Integration – By the optimization of energy and ancillary service markets at the global and local levels. N-SIDE algorithms leverage the flexibilities of DERs (Distributed Energy Resources) and allows an optimal coordination between TSOs and DSOs.

Transversal Integration – By the development of optimal cooperation between electricity, gas and heat systems thanks to integrated markets and bidding strategies.

In order to develop such algorithms taking into account all market constraints,
N-SIDE is using different types of advanced analytics:

Prescriptive analytics

Develop cutting-edge optimization algorithms to solve large-scale (multi-countries), non-linear (complex network representation, complex market rules), non-Convex (complex market products) problems in limited amount of time.

Predictive analytics

Forecast ancillary services needs for different timeframes and the associated bidding strategy.

Descriptive analytics

Represent in an accurate and tractable way the different grid constraints at the cross-border, transmission and distribution levels.

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Represent different grid constraints in a accurate and tractable way: ATC, Flow-based, Non-linear convex models (SOCP, SDP)

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Auction management

Define different bidding approach: explicit or emplicit bidding (price based control)

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Market product model

Model different types of market products: hourly curves, block orders, exclusive orders, complex orders, etc

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Price determination

Develop different price determination mechanisms: pay as clear, pays as bid, non-uniform pricing, etc

The Results

Smarter electricity market for a competitive Energy Transition!

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Optimize price setting and bid acceptance at maximum social welfare value

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Optimize procurement and activation of ancillary services at minimal cost

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Plan raw material procurement for cost-effective blending and low inventory

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Optimize coordination between TSO and DSO grid operations

M€ average daily value of matched trades

EU countries computing Day-Ahead electricity prices with Euphemia

minutes to solve European-wide market coupling problems

of successful days of coupling for Day-Ahead markets

Interested to know more ?

— They trust us —

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I value very much the current Euphemia team at N-SIDE: professional, precise, very responsive and working with a positive attitude. Please continue!

Caroline Gras – Head of Algorithm Management at EPEXSPOT

— They trust us —

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N-SIDE is proving a key partner within the SmartNet project thanks to a thorough experience in the modelling of real time electricity markets. This is a critical topic in the project: the dimension of the mathematical model is significant. So, the performance of the simulation platform will also depend significantly on the numerical treatment of the equations. Also on that, I know that with N-SIDE we are in very good hands.

GianLuigi Migliavacca –SmartNet Project Coordinator

— They trust us —

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N-SIDE combines a continuous drive for the highest quality possible, with a hands-on pragmatic attitude where needed in the field of energy market optimization. Within the SmartNet project, N-SIDE plays an important role in the development of a market simulation environment for innovative system services.

Daan Six, EnergyVille Research Domain Leader Energy Markets