Although the title sounds intellectually demanding, the truth is a bit simpler.
During the second seminar in Leipzig and Prague, we had the opportunity to experience a simulation game on the basic design of an energy stock exchange. Our speaker, Alois Tost, developed a simulation that follows the “truth of the energy stock exchange” in every detail.
There were at least four groups of participants that were asked to play the role of energy companies. Each of them received information about individual energy mix and installed capacity. The most important information was given in days (playing rounds): expectations of high demand and the costs of running, switching on, and switching off individual energy sources. The teams were asked to deliver to the operator (Alois) the capacity that they wanted to sell with the price of individual sources (nuclear, hard coal and lignite, gas and renewable sources). According to the logic of the market, the offer with the lowest price wins and sets the price. The teams were spread in different locations of the office to simulate the real world of an energy stock exchange. I would like to describe all details of the stock exchange, but it would not be fair for the others: if you would like to try it, you can ask Alois to organize it (somehow).
And then, you can experience the stock market mechanism on your own. Based on my experience, I enjoyed the feeling to be a “wolf of Wall Street” for a while and at the same time, I have learn a lot about energy trade mechanisms.