ELECTRA: A modeling framework for electricity markets

The international integration of electricity markets becomes ever more important when it comes to investment and policy choices in energy supply and climate policy. Despite this, Switzerland currently lacks an economic simulation framework that would allow for a suitable consideration of international electricity trade in the analysis of energy and climate policies.
Now, EPFL´s Research Lab of Economics and Environmental Management (REME) – with its partners Paul Scherrer Institute (PSI) and Econability – starts a new project with the goal to build an integrated bottom up – top down modeling framework with the required properties. The ELECTRA project (Electricity markets and trade in Switzerland and its neighbouring countries) is financed by the research program Energy-Economy-Society of the Swiss Federal Office of Energy.
ELECTRA creates a framework that involves the interplay of several models. A dynamic bottom-up model of the electricity system (PSI´s CROSSTEM) provides the techno¬logical detail for Switzerland and its neighbouring countries. It will be coupled to a dynamic applied general equilibrium model of the Swiss economy (Econability´s GENESwIS) and a multi-regional applied general equilibrium model (REME´s GEMINI-E3).
The ELECTRA simulation framework is designed to produce new insights into many relevant policy issues, such as Swiss energy policies (especially decisions concerning the close-down and construction of power plants), European electricity supply policies (e.g. modifications in German nuclear phase-out, European renewable quotas, investment into grid infrastructure, DESERTEC strategy), and climate policy (e.g. further development of the EU and Swiss Emissions Trading Systems).

(Photo: Matt Banks)