A Demand-Supply Equilibrium Model - Study Case on the Electricity Market for Households from the Perspective of Prices Liberalization

Anotace: Energy production and consumption exert considerable environmental pressure on climate change, deterioration of natural ecosystems and adverse health impacts. Our paper/scientific approach starts from the premise that in the near future the Romanian Electricity Market will be completely liberalized in order to be integrated in the Single Market Electricity. These profound changes will have a strong impact on the household behaviour. In this regard, we develop a dynamic model for the electricity market, based on the principle of supply and demand equilibrium. At the same time, by means of extrapolation methods we are deducing the expressions of demand and supply functions for electricity. These expressions are entered in a demand-supply model given by a dynamical system. The aim of this study is to investigate the equilibrium and the evolution of this system based on data sets from 1999 to 2021, in order to determine the evolution of electricity consumption and to establish competitive advantages for sustainable consumption.