Development of an agent-based model to analyse the effect of renewable energy on electricity markets

In this paper we present a bottom-up modelling approach of electric power and CO2-certificate markets including a detailed modelling of renewables using agent-based simulation: The Power ACE model. It has been developed at the Institute for Industrial Production, the Chair for Information Management and Systems (University of Karlsruhe) and the Fraunhofer Institute for Systems and Innovation Research. The market players of the German electricity market are modelled as independent entities. It is well suited to consider different strategies of market players and testing different market mechanisms