Dispatch based on short run marginal costs

Balmorel Lite reflects an energy only market dispatching power plants according to their short run marginal costs. Hence, capital cost and fixed operation and maintenance costs are not considered in the simulations.

Time resolution

The simulations are made with hourly time resolution.

Fuel and CO2-prices

The user sets CO2- and fuel prices. The CO2-price is perceived as a real cost by the power plants as in the case of CO2 tax or CO2 quota system.

The fuel costs of nuclear power include both front-end and waste management costs.

Price ceiling and load shedding

The market simulations assume a price ceiling of EUR 3000 per MWh. At this price level consumers are disconnected to achieve balance between supply and demand. If load shedding occurs, the amount of MWh that is disconnected, is shown in the results overview. When calculating total system costs load shedding is also priced at EUR 3000 per MWh, as an indication of the value of lost load (VOLL).

Load curves

The user can choose between a load curve for a cold climate location and a warm climate location. Both locations are on the Northern hemisphere.

Generation profiles for renewable energy technologies

The model includes two wind power generation profiles with capacity factors of 28 % and 40 % respectively. The generation profiles are based on the same wind resource assuming in general slightly higher generation in winter time. In the case of 40 % capacity factor the wind turbines are assumed to have a lower specific rating (relationship between generator output and rotor diameter) and higher towers to enjoy higher wind speeds.

The solar profile assumes a capacity factor of 14 %. Due to the location on the Northern hemisphere the generation is highest in summer time.

The hydro power run-of-river profile assumes a capacity factor of 38 %. Generation is highest in late spring.

The capacity factor of the hydro power plant with reservoir is 50 %. The inflow to the hydro power plant with reservoir follows the same profile as the run-of-river plant. The storage capacity of the reservoir can hold op to 66 % of the annual inflow to the reservoir with seasonal variations. The reservoir is in the middle of its bounderies at the beginning of the year and the model ensures that this is also the case at the end of year. The model optimizes electricity production from the hydro power plant with reservoir in order to maximize the value of the limited water inflow to the plant.

Power plant data

Variable O&M costs in EURO/MWh

  • Solar: 0.56
  • Nuclear: 4.00
  • Wind: 0.88
  • Coal: 1.50
  • Natural gas: 0.50
  • Light oil: 1.00
  • Biomass: 1.70