Abstract
Along with economic development and development of power systems, new, more effective models of the energy market are sought. Traditional zonal models used on the electricity market have proved to be poorly adapted to new circumstances and phenomena occurring in the macroeconomic environment. The main aim of the research was to show the direction (including the nodal model and prosumer behavior) in which the energy market should develop in order to meet the state-of-the-art technical, ecological and social challenges. Therefore, with the new challenges, a new chapter has opened up on very interesting research for the electrical industry. There are new solutions for the development and modernization of models from the point of view of management and econometrics of the energy market, adapted to new challenges related to ecology, technology, and competition. This article presents the zone model with its imperfections and suggestions for its improvement and proposes a nodal model that may in the near future become a new model for the functioning of the electricity market in Europe.
Highlights
The market is first of all a place where purchase and sale transactions are concluded, the market is a place where price trade-offs and trade transactions are settled [1]
Text analysis wasbased basedononliterature literature published in Polish and English, as well as reports, annual reports of energy companies, and articles published in specialist journals as well as reports, annual reports of energy companies, and articles published in specialist journals
The new model should change the energy pricing mechanism so that the model includes both the costs of its production and delivery to the recipient. This will create the right signals for network location and generation in a specific geographical area and will motivate energy companies to active investments
Summary
The market is first of all a place where purchase and sale transactions are concluded, the market is a place where price trade-offs and trade transactions are settled [1]. Determining the right price of electricity is a complex problem, as it concerns, inter alia, transfer of energy with transmission losses. Electricity markets around the world mainly use two models of the price settled: (a) zonal pricing and (b) nodal pricing. The energy costs depend on the place to which it is delivered. The market is a place where demand meets supply [4]. In the case of the electricity market, it is analogous, except that maintaining the supply and demand balance is much more important than on other markets, as electricity cannot be stored [5]. Work on the energy storage option has a key role to play in the transition to a carbon neutral economy in the future due to, inter alia, the unpredictable and uneven production of energy from renewable sources [6]
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