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reports - Deliverable

Analysis and simulations of electricity markets

reports - Deliverable

Analysis and simulations of electricity markets

The report presents the research activities carried out in the prospect of the development that energy markets will face in the coming decades, in order to support the energy transition necessary to mitigate the effects of anthropogenic climate change. These activities involved studies on the integration of electrolysers for the production of hydrogen into the electricity system and insights into the regulatory aspects of the Italian electricity market structure concerning these new types of flexible resources. At the same time as the simulations, all the necessary changes were made to the RSE simulation models to allow the modeling of the most innovative aspects of the electricity markets.

This report describes the research activities carried out in the face of energy markets evolution to support the ongoing energy transition, which is necessary to mitigate the effects of anthropogenic climate change. In particular, studies have been carried out regarding the integration of electrolysers into the electrical system, the so-called ‘Power-to-X’ systems, which produce another energy carrier – such as hydrogen or other synthesis gas – from electricity. These technologies can provide both synthetic fuels with no CO2 emissions, which are useful to support the decarbonization of the energy sector, and flexibility for the electricity sector, which is necessary above all for the management of generation from NPRS. To exploit the flexibility of these technologies, the dispatching services market shall be allowed to participate, in appropriate ways.
Therefore, a first analysis was performed on the state of the art of European regulations regarding the participation of Power-to-X technologies in electricity markets, also considering already active applications. This activity was preparatory to the second one, consisting of a scenario analysis with reference to the year 2030 aimed at evaluating the integration of these technologies into the Italian electricity system, with a specific focus on their ability to provide flexibility.
At the same time, we carried out a maintenance and updating activity of the mathematical models for the simulation of energy markets available to RSE, which was necessary to keep the tools used to conduct the studies always in step with the evolution of the regulatory framework of national and European energy markets. It mainly involved improving the modeling of service markets and extending them to non-traditional resources.

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