Influence of energy market implementation in Europe on long-term development of the power system

Aim of this paper is to investigate the advantages of energy market by incorporating it into large power system modeling process. The authors discuss optimization of long-term sustainable development of large power systems under energy market conditions. The paper considers test case with ENTSO-E and IPS/UPS power system calculations under market conditions, including sustainable development optimization and cost-benefit evaluation. The paper also describes application of zonal energy price formation algorithms and interaction of power systems on energy import/export issues. The tool of the research is LDM-TG information technology, which is developed by the Institute of Physical Energetics, Latvia. The information technology provides the opportunity to perform dynamic optimization of system development together with operational state calculations.