Abstract for: About the use of delays in electricity market models through a system dynamics approach

Using system dynamics (SD) modelling, first order and pipeline delays are implemented in a generic electricity market model in order to determine which is more adequate and provides a better approximation to the reality. Both types of delays can be used for representing a material delay and each one offers different results with pros and cons that are evaluated in this paper. With the market parameters of the Colombian electricity sector, the ppl delays show to be a better approximation to model the construction of new plants as well as the retirements of old plants delays.