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openENTRANCE / openentrance

Definitions of common terms (variables, regions, etc.) for the openENTRANCE project
http://openentrance.eu
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secondary energy prices #23

Open sandrinecharousset opened 4 years ago

sandrinecharousset commented 4 years ago

In the description of secondary energy prices that are available in the current nomenclature, there is sth I do not understand. It is written that this price corresponds to the price at the secondary level, i.e. for large scale consumers. I do not understand atht as in energy it is stated that secondary energy means energy resulting from a conversion process, and final energy is energy consumed by final users. Large consumers are final users. Moreover they do not buy in general their energy directly on the markets at market price, but negociate contracts with retailers (same as all users except it is far better ocntracts and they have dedicated people selling them energy). I would have thought that Price|secondary energy and price|primary energy would include the energy market prices. Which goes back to a question already discussed in #19 about the range of 'prices' that exist. To that range we may add the range of markets and products... eg for electricity there is a spot price, but also forward prices, both only including the 'energy'part of electricity,. We also have (or will have) capacity prices (for the 'power' part).... It is then a bit difficult to know what is in Price|secondary energy|electricity....

danielhuppmann commented 4 years ago

Thanks @sandrinecharousset for raising this issue. I agree that primary/secondary energy prices should reflect market prices, and large-scale consumers should be moved to an own variable in final-energy section.

To build further on this, there is also a time dimension. For simplicity, I would to use the most intuitive formulation possible, so Price|Secondary Energy|Electricity for an hour is (obviously) the (day-ahead) spot price and for a year is consumption-weighted average of the spot price.

For capacity-prices, the time dimension needs more thought, but in principle, Price|Capacity|Electricity should work.

Forward prices need further specifications (how much forward?), so this could be a sub-category of the secondary-energy price like Price|Secondary Energy|Electricity|Forward|3 months. This needs specification whether the time index is the year of starting the contract or its fulfilment.

@sandrinecharousset if you agree that this can work, I'll implement the first part right away, and we can come back to other prices in a next iteration.

sandrinecharousset commented 4 years ago

@danielhuppmann I mainly agree with your proposal; for more clarity could we use Price|Secondary Energy|Electricity|spot ? then would be clear especially when this variable has a year index, that it is an average of spot prices. Why consumption-weighted average of the spot price? and not average of spot prices? (I dont know if one is ore used than another.... we never use those yearly averages of spot prices)