discovery-et-gouvernance

Solutions

Deloitte European Electricity Market Model (DEEM)

Our model of electricity markets

The European energy sector is at the dawn of a new phase of radical transformation, aimed at decarbonising the entire value chain and increasing the efforts in terms of energy efficiency. It is therefore strategic to understand the evolution of electricity markets and their determinants.

Monitor developments in the electricity markets

Carbon neutrality by 2050 is now part of the energy policy objectives of a growing number of countries, as well as the European Union’s European Climate Law proposition. The impacts that these changes will have on the energy sector are numerous, especially with regard to the functioning of electricity markets (coal phase-out, acceleration of the deployment of renewable energies, electrification of uses, renewable hydrogen production etc.).

Anticipated developments are challenges and opportunities that market players or public decision-makers will have to consider in their strategies and long-term decision-making. The task is unprecedented in its scope and complexity. It will have to be based on a rigorous and quantitative analysis of the markets, making it possible to predict long-term trends in demand and prices. It will also have to integrate the uncertainty linked to future energy policies and the emergence of future energy vectors and sector coupling (Power-to-gas, Power-to-heat) or the development of new behaviours (transport, decentralised generation, etc.).

Experts in the capacity to analyze the present and future dynamics of the electricity sector

DEEM, our electricity market model, supports these decisions by analyzing scenarios created jointly with our modelling teams. Market conditions can be modelled at national or European level, including changes in market prices, the need for and profitability of new investments, the need for flexibility, or the assessment of new regulatory frameworks. In addition, scenario analysis and sensitivity analyses ensure the robustness of the results and quantify the uncertanties. These are presented through an intuitive interface that allows to visualize in parallel main hypotheses and export the data in common formats.

DEEM is a flexible and modular tool: our teams are able to deploy solutions adapted to your needs, allowing you to address original questions. In addition, we can also propose to couple DEEM with our other economic models (general equilibrium model, international commodity markets) in order to carry out more global analyses taking into account the interactions between the electricity sector and the rest of the economy.

 

Prospective scenarios

DEEM allows to draw long-term scenarios in the power sector.

Market evolutions, political decisions and available technology potential are taken into account to deliver various visions of the future system.

Illustrative DEEM dashboard

Those dashboards allow to vizualize both main results, hypotheses, and sensitivity studies.

Those are highly customizable, available remotely, and allow a visual and responsive exploration of the study.

Illustrative price forecast scenarios

Our modelling team is able to produce Monte-Carlo scenarios to assess multiple future price trajectories.

Robust asset assesments are therefore made possible thanks to probabilistic approach.

Our modules

Economic Dispatch

Market prices
Hourly dispatch
Cross border exchange

Unit Commitment

Technical constraints
Flexibility needs

Investments

Mid-term and long-term assessments
Adequacy study

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Added value for our clients

Customization

The design of the solution is flexible with the possibility of integrating new markets or energetic vectors for better analysis

Transparency

Secure access to the code

Quickness

Ready to start thanks to data already available and verified across Europe with more than 30,000 production plants informed

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Carried out studies

Study on needs for flexibility: impact of variable renewable integration

Unit Commitment

Study on market revenue in a low-carbon energy-only market

Market price formation
Profitability assessment

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Impact of an injection tariff on dispatch and investment

Cross-border impact
Dynamic model

Future of power in Europe

Scenario-based analysis
Optimal investment choices
Dynamic model

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Ask us for a service proposal

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Our expert

Johannes Trüby

Johannes Trüby

Directeur, Economic Advisory

Johannes, directeur au sein du département Economic Advisory, est spécialiste des marchés de l’énergie. Il a rejoint Deloitte après plusieurs années à l’Agence International de l’Energie où il dirigea... En savoir plus