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Simulation of cross-border capacity allocation

The demand for transfer capacities at the transmission interconnections between Control Areas in Europe is usually much higher than the capacity available for electricity trading. It is expected, that as a consequence of market opening according to the market liberalization in Europe, the demand will further increase over time.The pursue of an Integrated European Electricity Market (IEM) still holds many unsolved challenges for the system operators. To resolve this problem, it is important to have a well-organized transmission capacity auction platform where the market participants can purchase the rights of the transmission capacity. It is also important for these participants to make winning bids on the transmission rights for various amount of energy.This paper focuses on creating a model which is capable of simulating cross-border capacity auctions. After a short description, simulations of a capacity auctions will be presented using various numbers of agents as bidders and another agent as the auctioneer. Then an advanced modelling of transmission capacity auctioning will be presented. Improving the created simulation model with the implementation of two agent-learning methods will be shown. Finally, evaluation of the results and the possibilities of improvement, and the future objectives of this work will be described.