Long-term market and network constraint modelling
Since 2016, we have used BID3 to model European wholesale electricity markets and the GB balancing mechanism. BID3 replaced our previous market modelling tool, ELSI in order to allow us to perform our enhanced SO role in the following ways:
- More sophisticated and accurate modelling of European wholesale electricity markets, and the related market dispatch, including interconnector operations
- More sophisticated and accurate modelling of balancing mechanism and related market re-dispatch.
BID3 is retailed by Pöyry Management Consulting (www.poyry.co.uk), who have enhanced BID3 to include a Balancing Mechanism re-dispatch for Great Britain, thus allowing users to model the impact of GB transmission networks and calculate constraint costs, which we do for the purpose of Cost-Benefit Analysis in the NOA.
A report that explains why we needed to move from ELSI to a new model, why we chose BID3, what we will use the model for and how we ensured the model is the most economic and efficient solution for current and future work.
In order to improve transparency, the SO is pleased to provide an updated version of our former optimisation model ELSI. This is populated with updated scenario data. As such the user can gain valuable insight into the rationale behind investment decisions made by the SO in the data used for SO analysis. For reference, a user guide is also provided here.
Please send any comments or questions on the release of this model to [email protected].
Independent reviewer report
BID3 has been extensively benchmarked against ELSI. Two independent reviewers (Professor Keith Bell, University of Strathclyde and Dr Iain Staffell, Imperial College London) were appointed to review our development work, BID3 configuration and benchmarking.
We have also performed a backcasting exercise on the GB balancing mechanism to assure our stakeholders that BID3 can accurately depict GB balancing costs for our long term constraint forecasting. A report on this exercise can be found below which includes detailed analysis of how accurately BID3 can replicate 2015 balancing mechanism costs.