Market power, fuel substitution and infrastructure – A large-scale equilibrium model of global energy markets

Assessing and quantifying the impacts of technological, economic, and policy shifts in the global energy system require large-scale numerical models. We propose a dynamic multi-fuel market equilibrium model that combines endogenous fuel substitution within demand sectors and in power generation, detailed infrastructure capacity constraints and investment, as well as strategic behaviour and market power aspects by suppliers in a unified framework. This model is the first of its kind in which market power is exerted across several fuels.