Generation and Storage

How generation capacities and output are modelled across Europe

The generation stack across the regions we model explicitly — GB, Germany, Spain, Poland, and Italy — is shown below.

Generation output is based on load factors and short-run marginal costs (SRMCs) for each technology type. These determine when plants run and what prices they set.

What is a load factor? The ratio of actual energy generated to the total installed capacity over a given period. A 50% load factor means a plant generates half of what it theoretically could.

What is SRMC? The short-run marginal cost is what it costs a plant to generate one additional MWh. This determines the order in which plants are dispatched.

Future generation capacities

Generation capacities are forecast based on current installed capacities (from ENTSO-E and individual countries’ national data), combined with the Capacity Expansion Model. The capacity expansion model takes a centralised approach to buildout, minimising system costs while maintaining grid reliability.

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