Energy Market Design

The research area Energy Market Design with its research team consisting of economists, mathematicians and lawyers deals with economic and regulatory framework conditions for the transformation of the energy system. The focus is on the steering effect of market design for regulated grid expansion and private-sector investments in electricity and gas markets. In addition, different framework conditions at the distribution network level are examined, which make business models of regional stakeholders usable. Methodologically, a combination of theoretical, quantitative, empirical and experimental approaches is applied, with a focus on the field of calculable market equilibrium models.

Project coordination

Prof. Dr. Veronika Grimm

Chair Holder

FAU Erlangen-Nürnberg / Chair of Economic Theory

+49 911 / 5302-224

veronika.grimm@fau.de

Subprojects

Energy Market Design

Investment Incentives in Liberalized Energy Markets

Energy Market Design

Economic Analysis of Gas Markets

Project leader

Research team

Publications

Runge P, Sölch C, Albert J, Wasserscheid P, Zöttl G, Grimm V (2023)

Economic comparison of electric fuels for heavy duty mobility produced at excellent global sites-a 2035 scenario

Applied Energy

Aigner KM, Burlacu R, Liers F, Martin A (2023)

Solving AC Optimal Power Flow with Discrete Decisions to Global Optimality

Informs Journal on Computing

Kretschmer S (2022)

Carbon literacy - can simple interventions help? Effect of information provision on emissions knowledge of private households

Social Science Research Network

Adelhütte D, Biefel C, Kuchlbauer M, Rolfes J (2022)

Pareto Robust Optimization on Euclidean Vector Spaces

Optimization Letters

Julia Schwab, Christian Sölch, Gregor Zöttl (2022)

Electric Vehicle Cost in 2035: The impact of market penetration and charging strategies

Energy Economics

Aigner KM, Clarner JP, Liers F, Martin A (2022)

Robust Approximation of Chance Constrained DC Optimal Power Flow under Decision-Dependent Uncertainty

European Journal of Operational Research

Jonas Egerer, Veronika Grimm, Lukas M. Lang, Ulrike Pfefferer (2022)

Kohleausstieg 2030 unter neuen Vorzeichen

Wirtschaftsdienst

Veronika Grimm, Christian Sölch, Gregor Zöttl (2022)

Emissions reduction in a second-best world: On the long-term effects of overlapping regulations

Energy Economics

Biefel C, Liers F, Rolfes J, Schewe L, Zöttl G (2022)

Robust Market Equilibria under Uncertain Cost

European Journal of Operational Research

Christian Biefel, Prof. Dr. Frauke Liers, Dr. Jan Rolfes, Martin Schmidt (2022)

Affinely Adjustable Robust Linear Complementarity Problems

SIAM Journal on Optimization

Ambrosius M, Egerer J, Grimm V, van der Weijde AH (2022)

Risk aversion in multilevel electricity market models with different congestion pricing regimes

Energy Economics

Grimm V, Martin A, Sölch C, Weibelzahl M, Zöttl G (2022)

Market-based Redispatch May Result in Inefficient Dispatch

Energy Journal

Plein F, Thürauf J, Labbe M, Schmidt M (2021)

A Bilevel Optimization Approach to Decide the Feasibility of Bookings in the European Gas Market

Mathematical Methods of Operations Research

Egerer Jonas, Grimm Veronika, Kleinert Thomas, Schmidt Martin, Zöttl Gregor (2021)

The Impact of Neighboring Markets on Renewable Locations, Transmission Expansion, and Generation Investment

European Journal of Operational Research

Zoettl Gregor (2021)

Emission trading systems and the optimal technology mix

SERIEs : Journal of the Spanish Economic Association

Ambrosius M, Grimm V, Rückel B, Sölch C, Zöttl G (2021)

Data Documentation for the German Electricity Market Used for the Calibration of the GATE Model - NDP 2030 (Version 2017)

Liers Frauke, Schewe Lars, Thürauf Johannes (2021)

Radius of Robust Feasibility for Mixed-Integer Problems

Informs Journal on Computing

Kleinert Thomas, Grimm Veronika, Schmidt Martin (2021)

Outer Approximation for Global Optimization of Mixed-Integer Quadratic Bilevel Problems

Mathematical Programming

Labbé M, Plein F, Schmidt M, Thürauf J (2021)

Deciding Feasibility of a Booking in the European Gas Market on a Cycle is in P for the Case of Passive Networks

Networks

Ismer R, van Asselt H, Haverkamp J, Mehling M, Neuhoff K, Pirlot A (2021)

Climate Neutral Production, Free Allocation of Allowances under Emissions Trading Systems, and the WTO - How to Secure Compatibility with the ASCM

Veronika Grimm, Bastian Rückel, Christian Sölch, Gregor Zöttl (2021)

The Impact of Market Design on Transmission and Generation Investment in Electricity Markets

Energy Economics

Ismer R (2021)

Klimaschutz durch Steuern: Grundlagen und aktuelle Entwicklungen

Die Unternehmensbesteuerung

Burlacu R (2021)

On Refinement Strategies for Solving MINLPs by Piecewise Linear Relaxations: A Generalized Red Refinement

Bohlayer M, Bürger A, Fleschutz M, Braun M, Zöttl G (2021)

Multi-period investment pathways - Modeling approaches to design distributed energy systems under uncertainty

Applied Energy

Thomas Kleinert, Martine Labbé, Fränk Plein, Martin Schmidt (2020)

Closing the Gap in Linear Bilevel Optimization: A New Valid Primal-Dual Inequality

Optimization Letters

Ambrosius M, Egerer J, Grimm V, van der Weijde AH (2020)

Uncertain bidding zone configurations: The role of expectations for transmission and generation capacity expansion

European Journal of Operational Research

Ambrosius Mirjam, Grimm Veronika, Kleinert Thomas, Liers Frauke, Schmidt Martin, Zöttl Gregor (2020)

Endogenous Price Zones and Investment Incentives in Electricity Markets: An Application of Multilevel Optimization with Graph Partitioning

Energy Economics

Kleinert Thomas, Labbé Martine, Plein Fränk, Schmidt Martin (2020)

There's No Free Lunch: On the Hardness of Choosing a Correct Big-M in Bilevel Optimization

Operations Research

Kleinert Thomas, Schmidt Martin (2020)

Computing Feasible Points of Bilevel Problems with a Penalty Alternating Direction Method

Informs Journal on Computing

Grimm V, Kretschmer S, Mehl S (2020)

Green innovations: The organizational setup of pilot projects and its influence on consumer perceptions

Energy Policy

Grimm V, Grübel J, Rückel B, Sölch C, Zöttl G (2020)

Storage investment and network expansion in distribution networks: The impact of regulatory frameworks

Applied Energy

Grübel Julia, Kleinert Thomas, Krebs Vanessa, Orlinskaya Galina, Schewe Lars, Schmidt Martin, Thürauf Johannes (2020)

On electricity market equilibria with storage: Modeling, uniqueness, and a distributed ADMM

Computers & Operations Research

Adrian Bürger, Markus Bohlayer, Sarah Hoffmann, Angelika Altmann-Dieses, Marco Braun, Moritz Diehl (2020)

A whole-year simulation study on nonlinear mixed-integer model predictive control for a thermal energy supply system with multi-use components

Applied Energy

Bohlayer M, Markus F, Braun M, Zöttl G (2020)

Energy-intense production-inventory planning with participation in sequential energy markets

Applied Energy

Ismer R, Neuhoff K, Pirlot A (2020)

Border Carbon Adjustments and Alternative Measures for the EU ETS: An Evaluation

Bichler M, Grimm V, Kretschmer S, Sutterer P (2020)

Market design for renewable energy auctions: An analysis of alternative auction formats

Energy Economics

Schewe Lars, Schmidt Martin, Thürauf Johannes (2020)

Computing Technical Capacities in the European Entry-Exit Gas Market is NP-Hard

Annals of Operations Research

Löschel A, Grimm V, Lenz B, Staiß F (2020)

"Klimaschutz vorantreiben, Wohlstand stärken – Kommentierung zentraler Handlungsfelder der deutschen Energiewende im europäischen Kontext" - Stellungnahme der Expertenkommission zum Monitoring-Prozess "Energie der Zukunft"

Lang L, Dallinger B, Lettner G (2020)

The meaning of flow-based market coupling on redispatch measures in Austria

Energy Policy

Ismer R (2020)

A Union that Strives for More Also in the Area of Taxation: Tax Measures in the Incoming Commission’s Political Guidelines

EC Tax Review

Corinaldesi C, Fleischhacker A, Lang L, Radl J, Schwabeneder D, Lettner G (2019)

European Case Studies for Impact of Market-driven Flexibility Management in Distribution Systems

Neuhoff K, Ismer R (2019)

CO2-Bepreisung: warum die Anpassung der Energiesteuer ein gutes Instrument wäre

Kleinert Thomas, Schmidt Martin (2019)

Global Optimization of Multilevel Electricity Market Models Including Network Design and Graph Partitioning

Discrete Optimization

Grimm V, Rückel B, Sölch C, Zöttl G (2019)

Regionally Differentiated Network Fees to Affect Incentives for Generation Investment

Energy

Robert Burlacu, Herbert Egger, Martin Groß, Alexander Martin, Marc E. Pfetsch, Lars Schewe, Mathias Sirvent, Martin Skutella (2019)

Maximizing the storage capacity of gas networks: a global MINLP approach

Optimization and Engineering

Ambrosius M, Grimm V, Rückel B, Sölch C, Zöttl G (2019)

Data Documentation for the German Electricity Market used for the calibration of the GATE Model - NDP 2025 (Version 2015)

Grimm V, Schewe L, Schmidt M, Zöttl G (2019)

A multilevel model of the European entry-exit gas market

Mathematical Methods of Operations Research

Robinius Martin, Schewe Lars, Schmidt Martin, Stolten Detlef, Thürauf Johannes, Welder Lara (2019)

Robust optimal discrete arc sizing for tree-shaped potential networks

Computational Optimization and Applications

Grimm Veronika, Grübel Julia, Schewe Lars, Schmidt Martin, Zöttl Gregor (2019)

Nonconvex Equilibrium Models for Gas Market Analysis: Failure of Standard Techniques and Alternative Modeling Approaches

European Journal of Operational Research

Kufner T., Leugering G., Martin A., Medgenberg J., Schelbert J., Schewe L., Stingl M., Strohmeyer C., Walther M. (2019)

Towards a lifecycle oriented design of infrastructure by mathematical optimization

Optimization and Engineering

Schewe Lars, Schmidt Martin, Thürauf Johannes (2019)

Structural Properties of Feasible Bookings in the European Entry-Exit Gas Market System

4OR-A Quarterly Journal of Operations Research

Sölch C (2019)

The impact of market design on transmission and generation investments in liberalized electricity markets with zonal pricing

Ismer R, Haußner M, Meßerschmidt K, Neuhoff K (2019)

Sozialverträglicher CO2-Preis: Vorschlag für einen Pro-Kopf-Bonus im Rahmen des Krankenversicherungssystems

Zeitschrift für Umweltrecht ZUR

Grimm V, Kleinert T, Liers F, Schmidt M, Zöttl G (2019)

Optimal price zones in electricity markets: a mixed-integer multilevel model and global solution approaches

Optimization Methods & Software

Grimm V, Orlinskaya G, Schewe L, Schmidt M, Zöttl G (2019)

Optimal Design of Retailer-Prosumer Electricity Tariffs Using Bilevel Optimization

Reuß Markus, Welder Lara, Thürauf Johannes, Linßen Jochen, Grube Thomas, Schewe Lars, Schmidt Martin, Stolten Detlef, Robinius Martin (2019)

Modeling Hydrogen Networks for Future Energy Systems: A Comparison of Linear and Nonlinear Approaches

International Journal of Hydrogen Energy

Runge P, Sölch C, Albert J, Wasserscheid P, Zöttl G, Grimm V (2019)

Economic comparison of different electric fuels for energy scenarios in 2035

Applied Energy

Neuhoff K, Chiappinelli O, Gerres T, Haussner M, Ismer R, May N, Pirlot A, Richstein J (2019)

Building Blocks for a Climate-Neutral European Industrial Sector: Policies to Create Markets for Climate-Friendly Materials to Boost EU Global Competitiveness and Jobs

Assembayeva M, Egerer J, Mendelevitch R, Zhakiyev N (2019)

Spatial electricity market data for the power system of Kazakhstan

Data in Brief

Ruderer D, Zöttl G (2018)

Transmission Pricing and Investment Incentives

Utilities Policy

Hiller Benjamin, Koch Thorsten, Schewe Lars, Schwarz Robert, Schweiger Jonas (2018)

A System to Evaluate Gas Network Capacities: Concepts and Implementation

European Journal of Operational Research

Bohlayer M, Zöttl G (2018)

Low-Grade Waste Heat Integration in Distributed Energy Generation Systems - An Economic Optimization Approach

Energy

Groß M, Pfetsch ME, Schewe L, Schmidt M, Skutella M (2018)

Algorithmic Results for Potential-Based Flows: Easy and Hard Cases

Networks

Ambrosius M, Grimm V, Sölch C, Zöttl G (2018)

Investment Incentives For Flexible Demand Options Under Different Market Designs

Energy Policy

Neuhoff K, Chiappinelli O, Bataille C, Haußner M, Ismer R, Joltreau E, Jürgens I, Piantieri C, Richstein J, Sator O, Singhal O, Stede J (2018)

Filling gaps in the policy package to decarbonise production and use of materials

Bohlayer M., Fleschutz M., Braun M., Zöttl G. (2018)

Demand side management and the participation in consecutive energy markets – A multistage stochastic optimization approach

Gugat Martin, Leugering Günter, Martin Alexander, Schmidt Martin, Sirvent Mathias, Wintergerst David (2018)

MIP-based instantaneous control of mixed-integer PDE-constrained gas transport problems

Computational Optimization and Applications

Assembayeva M, Egerer J, Mendelevitch R, Zhakiyev N (2018)

A spatial electricity market model for the power system: The Kazakhstan case study

Energy

Krebs Vanessa, Schewe Lars, Schmidt Martin (2018)

Uniqueness and Multiplicity of Market Equilibria on DC Power Flow Networks

European Journal of Operational Research

Grimm V, Kretschmer S, Mehl S (2018)

Home energy storage: A characterization of potential adopters in Germany

Schmidt Martin, Sirvent Mathias, Wollner Winnifried (2018)

A Decomposition Method for MINLPs with Lipschitz Continuous Nonlinearities

Mathematical Programming

Gugat Martin, Leugering Günter, Martin Alexander, Schmidt Martin, Sirvent Mathias, Wintergerst David (2018)

Towards Simulation Based Mixed-Integer Optimization with Differential Equations

Networks

Haußner M, Ismer R (2018)

Betrieb von Stromspeichern durch Verteilernetzbetreiber: Eine Analyse des aktuellen Entflechtungsregimes und der geplanten Änderungen durch das Winterpaket der Europäischen Kommission

EnWZ - Zeitschrift für das gesamte Recht der Energiewirtschaft

Egerer J, Oei PY, Lorenz C (2018)

Renewable Energy Sources as the Cornerstone of the German Energiewende

Geißler Björn, Morsi Antonio, Schewe Lars, Schmidt Martin (2018)

Solving Highly Detailed Gas Transport MINLPs: Block Separability and Penalty Alternating Direction Methods

Informs Journal on Computing

Krebs Vanessa, Schmidt Martin (2018)

Uniqueness of Market Equilibria on Networks with Transport Costs

Operations Research Perspectives

Schewe Lars, Schmidt Martin (2018)

Computing Feasible Points for Binary MINLPs with MPECs

Mathematical Programming Computation

Mehrmann Volker, Schmidt Martin, Stolwijk JeroenJ. (2018)

Model and Discretization Error Adaptivity within Stationary Gas Transport Optimization

Vietnam Journal of Mathematics

Holz F, Egerer J, Gerbaulet C, Oei PY, Mendelevitch R, Neumann A, von Hirschhausen C (2018)

Energy Infrastructures for the Low-Carbon Transformation in Europe

Lorenz C, Egerer J, Gerbaulet C (2018)

Cross-Border Cooperation in the European Context: Evidence from Regional Cooperation Initiatives

Hante FalkM., Schmidt Martin (2017)

Complementarity-Based Nonlinear Programming Techniques for Optimal Mixing in Gas Networks

Grimm V, Ambrosius M, Rückel B, Sölch C, Zöttl G (2017)

Modellierung von liberalisierten Strommärkten – Herausforderungen und Lösungen

Perspektiven der Wirtschaftspolitik

Hübner Jens, Schmidt Martin, Steinbach MarcC. (2017)

Optimization Techniques for Tree-Structured Nonlinear Problems

Neuhof K, Chiappinelli O, Baron R, Barrett J, Bukowski M, Duscha V, Fleiter T, Haussner M, Ismer R, Kok R, Nemet Gegory, Pollitt H, Richtstein J, Vakhitova T, Wyns T, Zetterber L (2017)

Innovation and use of policies required to realize investment and emission reductions in the materials sector - Initial Findings

Stoll S, Zöttl G (2017)

Transparency in Buyer-Determined Auctions: Should Quality be Private or Public?

Production and Operations Management

Grimm V, Schewe L, Schmidt M, Zöttl G (2017)

Uniqueness of market equilibrium on a network: A peak-load pricing approach

European Journal of Operational Research

Hante FalkM., Leugering Günter, Martin Alexander, Schewe Lars, Schmidt Martin (2017)

Challenges in Optimal Control Problems for Gas and Fluid Flow in Networks of Pipes and Canals: From Modeling to Industrial Applications

Leugering Günter, Martin Alexander, Schmidt Martin, Sirvent Mathias (2017)

Nonoverlapping Domain Decomposition for Optimal Control Problems governed by Semilinear Models for Gas Flow in Networks

Control and Cybernetics

Grimm V, Zöttl G, Sölch C (2017)

Regionalkomponenten bei der EE-Vergütung. Gutachten im Auftrag der Monopolkommission in Vorbereitung des 77. Sondergutachtens "Energie 2017" der Monopolkommission

Geißler Björn, Morsi Antonio, Schewe Lars, Schmidt Martin (2017)

Penalty Alternating Direction Methods for Mixed-Integer Optimization: A New View on Feasibility Pumps

SIAM Journal on Optimization

Humpola Jesco, Joormann Imke, Oucherif Djamal, Pfetsch MarcE., Schewe Lars, Schmidt Martin, Schwarz Robert (2017)

GasLib - A Library of Gas Network Instances

Data

Grimm V, Martin A, Schmidt M, Weibelzahl M, Zöttl G (2016)

Transmission and generation investment in electricity markets: The effect of market splitting and network fee regimes

European Journal of Operational Research

Neuhoff K, Ismer R, Acworth W, Ancygier A, Fischer C, Haussner M, Kangas H, Kim Y, Munnings C, Owen A, Pauliuk S, Sartor O, Sato M, Stede J, Sterner T, Tervooren M, Tusveld R, Wood R, Xiliang Z, Zetterberg L, Zipperer V (2016)

Eine Option für den Emissionshandel nach 2020: Einbeziehung des Konsums emissionsintensiver Materialien

Grimm V, Martin A, Weibelzahl M, Zöttl G (2016)

On the long run effects of market splitting: Why more price zones might decrease welfare

Energy Policy

Ismer R, Haußner M, Neuhoff K, Acworth W (2016)

Inclusion of Consumption into Emissions Trading Systems: Legal Design and Practical Administration

Grimm V, Rückel B, Sölch C, Zöttl G (2016)

Zur Reduktion des Netzausbaubedarfs durch Redispatch und effizientes Engpassmanagement: Eine modellbasierte Abschätzung

List Forum für Wirtschafts- und Finanzpolitik

Grimm V, Zöttl G, Ambrosius M, Rückel B, Sölch C (2016)

Dezentralität und zellulare Optimierung - Auswirkungen auf den Netzausbaubedarf. (Gutachten im Auftrag der N-Ergie AG, gemeinsam mit der Prognos AG)

Ambrosius M, Grimm V, Sölch C, Zöttl G (2016)

Investment incentives for flexible energy consumption in the industry

Ismer R, Haußner M, Piotrowski P (2016)

Das Energiesteuerrecht vor dem Hintergrund des Beihilferechts

ZfZ - Zeitschrift für Zölle und Verbrauchssteuern

Fratzscher M, Articus S, Bsirske F, Feiger R, Feld LP, Fitschen J, Grimm V, Hoffmann R, Jung H, Kerber M, Lemb W, Lersch-Mense FJ, Loewenstein HH, Mayer T, Oletzky T, Russwurm S, Schnitzer M, Schröder U, Schwager H, Schweitzer E, Vassiliadis M, Böger TR, Nauschnigg F, Posselt T, Bender A, Eckart W, Eide S, Homann D, Lieber A, Schuknecht L, Alm B, L'Hoest R, Meurers M, Neuhäußer U, Steinberg P, Weins S, Zettelmeyer J, Gornig M, Michelsen C, Pagel B, Schiersch A (2016)

"Stärkung von Investitionen in Deutschland" - Stellungnahme der Expertenkommission im Auftrag des Bundesministers für Wirtschaft und Energie, Berlin.

Ismer R, Haußner M (2016)

Inclusion of Consumption into the EU ETS: The Legal Basis under European Union Law

Review of European, Comparative & International Environmental Law

Neuhoff K, Stede J, Zipperer V, Haußner M, Ismer R (2016)

Ergänzung des Emissionshandels: Anreize für einen klimafreundlicheren Verbrauch emissionsintensiver Grundstoffe

DIW Wochenbericht

Inclusion of Consumption of carbon intensive materials in emissions trading – An option for carbon pricing post-2020

Ismer R, Haußner M (2015)

Emissions Trading and Tax Treaties

Bulletin for International Taxation