ADICA is a worldwide provider of cutting-edge analysis software that enables our clients to succeed in evolving power markets. We specialize in the application of innovative Agent-Based Modeling software developed in collaboration with Argonne National Laboratory. ADICA's Electricity Market Complex Adaptive System (EMCAS) Software was recently transfered for use in Analyzing the Iberian Electricity Market.

In fulfilling its joint mission as system operator and market operator in Portugal, REN - Rede Eléctrica Nacional, S.A. is responsible for ensuring the continuous supply of electricity at the lowest possible cost, meeting quality and safety criteria, maintaining the balance between supply and demand, and protecting the legitimate interests of different players in the electricity market. In support of this mission, REN has selected ADICA's EMCAS software for analyzing the behavior of power market participants under alternative regulatory scenarios of future rules of the power market for Portugal and Spain.

As stated by Mr. Paulo Soares de Pinho, Member of the Board of Directors of REN,

“We feel the need for a new modelling approach that:

Incorporates the imperfect competition nature of the liberalised market,
Adequately handles the hydro/thermal nature of Portugal’s production,
Is able to fully model the future Iberian Electricity Market,
Is able to simulate the short-term behavior of the agents involved, and
Is also able to constitute an important long-range planning tool.

We expect EMCAS to become that tool.”

Staff from ADICA and Argonne National Laboratory customized EMCAS for analyzing the Iberian Market and transferred the software and associated database for continued use at REN. Expected results from using EMCAS in Portugal include:

1. Simulation of hydro system operation within a power market environment;
2. Assessment of the bidding behavior of power market participants;
3. Estimation of wholesale and retail price volatility;
4. Determination of power market based capacity expansion schedule;
5. Reporting on costs, revenues and profits for all power market participants under different assumptions about power market rules and regulations; and 
6. Analyzing the impact of the European CO2 Emission Trading System on power market participant bidding strategies, power plant operations, and resulting electricity prices and use.