Test Case 23

Test Case 23 asserts that piece-wise quadratic cost functions for input procurement work as desired. It is structurally similar to Test Case 3, only that the first block of input procurement only goes to 25% of the total capacity of 1. After a quantity of 0.2, an increase in marginalized cost slope can be identified. Below, a graphical representation of the optimal solution is provided. Hence, this test passes if the equilibrium price is $P=1.5$, with an objective value of 0.45 and corresponding social welfare of 0.575 (see the grey area in the graphic).

Sets

Set NameSet Value
$\mathcal{A}$$\{DEU\_to\_DEU\}$
$\mathcal{AC}$$\{(DEU\_to\_DEU, CNG)\}$
$\mathcal{C}$$\{CNG\}$
$\mathcal{DSB}$$\{Block 1\}$
$\mathcal{I}$$\{Natural Gas\}$
$\mathcal{IOB}$$\{Block 1,Block 2\}$
$\mathcal{M}$$\{OnlyTimeStep\}$
$\mathcal{N}$$\{DEU\}$
$\mathcal{O}$$\{FES\}$
$\mathcal{P}$$\{P\_DEU\}$
$\mathcal{RA}$
$\mathcal{RS}$
$\mathcal{RV}$
$\mathcal{S}$
$\mathcal{T}$$\{T\_DEU\}$
$\mathcal{V}$
$\mathcal{VT}$
$\mathcal{Y}$$\{2020\}$

Parameters

Parametery=2020
$\frac{1}{ | \Delta |_{y}}$$1$
${1}^{NC}_{T\_DEU,DEU,CNG}$$1$
$r_{y}$$1$
$d_{OnlyTimeStep}$$1$
$c^{P}_{P\_DEU,CNG,FES,y}$$0.3$
$c^{\Delta P}_{P\_DEU,CNG,FES,y}$$1$
$fi^{P}_{CNG,Natural Gas,FES}$$1$
$L^{P}_{CNG,FES}$$50$
$\Lambda^{P}_{P\_DEU,CNG,FES,y}$$10$
$\Lambda^{I}_{P\_DEU,Natural Gas,Block 1,y}$$0.25$
$\Lambda^{I}_{P\_DEU,Natural Gas,Block 2,y}$$0.75$
$\Omega^{I}_{P\_DEU,Natural Gas,Block 1,y}$$0$
$\Omega^{I}_{P\_DEU,Natural Gas,Block 2,y}$$0$
$c^{\Delta^{I}}_{P\_DEU,Natural Gas,Block 1,y}$$0$
$c^{\Delta^{I}}_{P\_DEU,Natural Gas,Block 2,y}$$0$
$\Lambda^{T}_{T\_DEU,DEU,CNG,FES,y}$$10$
$\Omega^{P}_{P\_DEU,CNG,FES,y}$$10$
$l^{A}_{DEU\_to\_DEU,CNG}$$0$
$c^{A}_{DEU\_to\_DEU,CNG,y}$$0$
$c^{\Delta A}_{DEU\_to\_DEU,CNG,y}$$0$
$\Lambda^{A}_{DEU\_to\_DEU,CNG,y}$$0$
$L^{A}_{CNG}$$50$
$c^{I_{l}}_{P\_DEU,Natural Gas,Block 1,OnlyTimeStep,y}$$0.1$
$c^{I_{q}}_{P\_DEU,Natural Gas,Block 1,OnlyTimeStep,y}$$0.4$
$av^{I}_{P\_DEU,Natural Gas,Block 1,OnlyTimeStep}$$1$
$c^{I_{l}}_{P\_DEU,Natural Gas,Block 2,OnlyTimeStep,y}$$0.2$
$c^{I_{q}}_{P\_DEU,Natural Gas,Block 2,OnlyTimeStep,y}$$2.0$
$av^{I}_{P\_DEU,Natural Gas,Block 2,OnlyTimeStep}$$1$
$\alpha^{D}_{DEU,CNG,Block 1,OnlyTimeStep,y}$$2$
$\beta^{D}_{DEU,CNG,Block 1,OnlyTimeStep,y}$$-1$

Test Criteria

ExpressionResult y=2020
$\tilde{P}^{T \rightarrow D}_{DEU,CNG,Block 1,OnlyTimeStep,y}$$1.5$
Objective Value$0.45$
Social Welfare$0.575$

Graphical Solution

Profit Maximization in a Cournot Setting

test_case_23_graphic