Fundamental bottom-up linear programming electricity market model for Germany and Europe with high time resolution and detailed depiction of flexibility options.

General Information

The European Electricity Market Model (E2M2) is a fundamental electricity market model, which optimises unit commitment and investment decisions in the European competitive electricity market with the aim to minimise system costs. This enables E2M2 to identify sensible measures to efficiently integrate high shares of renewables into the electricity system.

E2M2 is a linear program with optional mixed-integer constraints for a discreet depiction of generation units. Thus, restrictions like minimum operation or minimum shutdown times can be taken into consideration. Moreover, E2M2 allows to model uncertainties with a stochastic approach.


The European electricity market model E2M2 provides comprehensive information on the optimum of the analysed system. Besides directly calculated results which we gain from solving the primal problem like cost optimal resource and investment planning, dual variables can be interpreted as marginal costs. The dual variable of the equation covering the satisfaction of the electricity demand additionally provides information on the hourly day ahead electricity prices. This can be interpreted as the bidding price of the marginal power plant. When defining a CO2 upper bound, additional information on the resulting CO2 certificate prices are available.

E2M2 in detail displays thermal power plants, renewables as well as flexibility options like storage technologies, demand side management or net transfer capacities on unit level in order to identify an efficient combination of integration and flexibilization.  

Besides condensation electric power plants, the optimisation also includes different types of combined heat and power stations. Here, the model also takes regard of the current situation concerning demand for heat and heat generation plants. The provision of balancing energy differentiates between different balancing products and takes regard of the operational flexibility of power plants.

Bothor, S., Steurer, M., Eberl, T., Brand, H., Voß, A (2015). “Bedarf und Bedeutung von Integrations-und Flexibilisierungsoptionen in Elektrizitätssystemen mit steigendem Anteil erneuerbarer Energien“ – IEWT-Konferenz Wien 2015.

Hundt, M., Barth, R., Sun, N., Brand, H., Voß, A. (2010) „Herausforderungen eines Elektrizitätsversorgungssystems mit hohen Anteilen erneuerbarer Energien“. Institut für Energiewirtschaft und Rationelle Energieanwendung (IER). Stuttgart, 2010. – Studie im Auftrag der E.ON Energie AG.

Sun, N. (2013) „Modellgestützte Untersuchung des Elektrizitätsmarktes: Kraftwerkseinsatzplanung und –investitionen“, Forschungsbericht Band 112, Institut für Energiewirtschaft und Rationelle Energieanwendung (IER). Universität Stuttgart, 2013.

Sun, N., Ellersdorfer, I., Swider, D.J. (2008) “Model-Based Long-Term Electricity Generation System Planning Under Uncertainty” – 3th International Conference on Electric Utility Deregulation and Restructuring and Power Technologies. pp. 1298–1304.

Contact person

This image shows Kai Hufendiek

Kai Hufendiek

Prof. Dr.-Ing.

Professor for Energy Economics and Energy Systems

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