Georgios Savvidis

Mr. Georgios Savvidis

IER - Institute of Energy Economics and Rational Energy Use, University of Stuttgart

Research Focus & Metrics

Academic Career Length

7Years (2020-Present)

(Calculated once Scilit publication data is synced: current year − year of first publication + 1)

Representative Publications

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31 July 2020 in Energies
Verified
Journal Article
Open access
PDF file
Laura Torralba-DíazLaura Torralba-Díaz
Laura Torralba-Díaz
CSChristoph Schimeczek
Christoph Schimeczek
MRMatthias Reeg
Matthias Reeg
GSGeorgios Savvidis
Georgios Savvidis
MDMarc Deissenroth-Uhrig
Marc Deissenroth-Uhrig
KHKai Hufendiek
Kai Hufendiek
A reliable and cost-effective electricity system transition requires both the identification of optimal target states and the definition of political and regulatory frameworks that enable these target states to be achieved. Fundamental optimization models are frequently used for the determination of cost-optimal system configurations. They represent a normative approach and typically assume markets with perfect competition. However, it is well known that real systems do not behave in such an optimal way, as decision-makers do not have perfect information at their disposal and real market actors do not take decisions in a purely rational way. These deficiencies lead to increased costs or missed targets, often referred to as an “efficiency gap”. For making rational political decisions, it might be valuable to know which factors influence this efficiency gap and to what extent. In this paper, we identify and quantify this gap by soft-linking a fundamental electricity market model and an agent-based simulation model, which allows the consideration of these effects. In order to distinguish between model-inherent differences and non-ideal market behavior, a rigorous harmonization of the models was conducted first. The results of the comparative analysis show that the efficiency gap increases with higher renewable energy shares and that information deficits and policy instruments affect operational decisions of power market participants and resulting overall costs significantly.