On the reduction of large power system models for power market simulations

The need for studying large scale power systems is increasing due to long distance power transfers, common power markets and planning of highly interconnected areas. Large systems are difficult to handle if not reduced. This paper focuses on reduction techniques already applied on power system models in order to achieve better calculation performance, easier handling of large amount of data and better observation of the results. In the literature there are many models for both different purposes, static or dynamic. According to the purpose of the model, different inputs and outputs criteria apply. Here, four methods are compared, two conventional, e.g. WARD, REI, and two market-based, according to their suitability for large scale reduction and development of economic models. Besides, the criteria of reducing the European electricity network are discussed and defined.