Algorithmic properties of the all-European day-ahead electricity market

Abstract

Currently functioning European electricity markets are subjected to a comprehensive transformation, which includes the unification of different day-ahead power exchanges (PXs) into an all-European bidding and clearing process. The inner core of this platform is intended to be an algorithm called EUPHEMIA, which can be viewed as a hybrid of different existing PX designs. One of the most important contibutors of EUPHEMIA is the COSMOS algorithm which is currently operated for market clearing in several countries. If viewed as an extended version of COSMOS, properties of EUPHEMIA can be put into their proper context. Our paper attempts to examine the most important newly introduced components and the effects of their integration into the COSMOS' framework. Particular attention is paid to possible growth of computational complexity. The resulting model is investigated to find feasible solution techniques and to discuss the expected practical benefits of several optimization methods and softwares.