Decision Support Models in the Electric Power Industry

Last December, Dr. Felix Müsgens of Brandenburg university of technology, my colleague from his visiting days at the OIES, had invited me to talk about energy market modelling in Cottbus. I was very honoured by the opportunity. At  the same time, I felt challenged: what do I have to say to a professional audience, that is not
A. Something so general, that it does not need to be said;
B. Something so narrow, that nobody other than me could possibly be interested in it?
After some reflection, I have decided to talk about the most valuable skill that I have started to acquire, as a result of being immersed in the activity of modelling the energy industry.

I chose to talk about model formulation, the process that precedes the writing of equations or algorithms. More specifically, I decided to talk about the process of model formulation of decision support models in the power industry. 

My presentation (shown below) can be divided into three parts:
1. General background information on the practice of modelling and on decision problems
2. Several ways of looking at the specific context we have for modelling: the operations of the electric power industry
3. After all the preparation above, we can finally dive into the heart of matter. Discussion of model formulation choices. 

Why have I settled on these points? Because, when I was first starting out in this area, I found myself unable to answer very fundamental questions such as:
What am I doing? What is modelling?
Why am I doing this? Why am I building this model?
Why do I do it in this particular way? Why have I chosen this particular model formulation?

This presentation, in a way, is an answer for myself, four years ago. It is what I wish I knew back then. I hope it will be useful for you, my readers,  in your work, in providing a way to think about what modellers do.