Modelling flexibility: how storage and demand response change price dynamics
As decarbonisation progresses in power systems, flexibility is now the key asset in electricity markets. Historically, forecasting models relied on predictable thermal power plants, but modern systems are much more dynamic. The integration of large amounts of weather-dependent renewables, rapid-response batteries, and smarter demand-side assets influences prices in complex ways that basic supply-and-demand models cannot adequately capture.
