Developing the European Electricity Market ModelUploaded: 1 of October, 2012

The European Electricity Market Model (EEMM) – is further developed by REKK in 2011-2012 – now covers the whole European region, including not only the generation side, but also the transmission network developments. The newly upgraded model is applied to analyse two important developments in the European electricity markets: the overall impact of the German nuclear phase-out and the analysis of the planned developments of the European electricity network.

Analysing the impact of the German nuclear phase-out

In May 2011, the German Parliament voted for decommissioning all nuclear reactors until 2022. Eight reactors that have been shut down already in 2011 represent 41% of total nuclear capacities. Our analysis focuses on the following issues in the time frame of 2012-2020: (1) the potential impact on wholesale electricity prices, (2) the resulting change in the generation mix in the rest of Europe, (3) the change in export import balance positions among European countries and (4) greenhouse gas (GHG) emissions.

Analysing the impact of transmission line developments on the European electricity network

Since the introduction of the Third Energy Package of the EU in 2009 the EU Commission is taking more proactive role in the European network developments. This entails, that the Commission should also refine the methods and tools to measure and prioritise the individual transmission line investments in a wider European context. Our analysis with the application of the EEMM model quantifies the welfare effects of the planned individual cross-border investments listed in the ENTSO-E Ten-Year Network Development Plan (TYNDP) of 2010 on the whole EU 27 including both the producer and consumer surplus effects.