Open Access

This report presents a method to integrate highly flexible technology models for distributed energy resources such as electric vehicles, power-to-heat systems, or home battery systems into a Lagrangian relaxation of the pan-European day-ahead electricity market (EULR). These flexible technology models are highly sensitive to the changes of Lagrangian multipliers within the iterative Lagrangian relaxation process, leading to volatile behavior. Furthermore, they show a high concurrency in their market behavior due to their technical homogeneity. Therefore, the method proposed in this report is an extension of the existing EULR modeling approach to improve the model's convergence. The methodological extension comprises a convex combination of iteration solutions for the Lagrangian relaxation subproblems similar to Dantzig-Wolfe decomposition. An exemplary case study shows the effectiveness of this extended approach.

The European energy system has been through a fundamental transformation since the Paris Agreement to reduce greenhouse gas emissions. The transition involves several energy-generating and consuming sectors emphasizing sector coupling. The increase in the share of renewable energy sources has revealed the need for flexibility in the electri city grid. Thus, holistic planning of pathways towards decarbonized energy systems also involves assessing the gas infrastructure to provide such a flexibility and support for the security of supply. In this paper, we propose a workflow to investigate such optimal energy transition pathways considering sector coupling. This workflow involves an integrated operational analysis of the electricity market, its transmission grid, and the gas grid in high spatio-temporal resolution. In a case study on a pan-European scale between 2020-2050, we show that carbon neutrality can be reached within feasible additional costs and in time. However, the manifestation of the potential pathways strongly depends on political and technological constraints. Sector coupling acts as an enabler of cross-border cooperation to achieve both, decarbonization and security of supply.

Most recently, the European energy system has undergone a fundamental transformation to meet decarbonization targets without compromising the security of the energy supply. The transition involves several energy-generating and consuming sectors emphasizing sector coupling. The increase in the share of renewable energy sources has revealed the need for flexibility in supporting the electricity grid to cope with the resulting high degree of uncertainty. The new technologies accompanying the energy system transition and the recent political crisis in Europe threatening the security of the energy supply have invalidated the experience from the past by drastically changing the conventional scenarios. Hence, supporting strategic planning tools with detailed operational energy network models with appropriate mathematical precision has become more important than ever to understand the impacts of these disruptive changes. In this paper, we propose a workflow to investigate optimal energy transition pathways considering sector coupling. This workflow involves an integrated operational analysis of the electricity market, its transmission grid, and the gas grid in high spatio-temporal resolution. Thus, the workflow enables decision-makers to evaluate the reliability of high-level models even in case of disruptive events. We demonstrate the capabilities of the proposed workflow using results from a pan-European case study. The case study, spanning 2020-2050, illustrates that feasible potential pathways to carbon neutrality are heavily influenced by political and technological constraints. Through integrated operational analysis, we identify scenarios where strategic decisions become costly or infeasible given the existing electricity and gas networks.