From 8ea65aea0203f5ae8ba03b846d7520b37dca5857 Mon Sep 17 00:00:00 2001
From: Florian Maurer <maurer@fh-aachen.de>
Date: Mon, 22 Jan 2024 14:02:22 +0100
Subject: [PATCH] add support_policies documentation

---
 docs/source/index.rst            |  2 +
 docs/source/support_policies.rst | 72 ++++++++++++++++++++++++++++++++
 2 files changed, 74 insertions(+)
 create mode 100644 docs/source/support_policies.rst

diff --git a/docs/source/index.rst b/docs/source/index.rst
index a6e8ed07c..533af9a87 100644
--- a/docs/source/index.rst
+++ b/docs/source/index.rst
@@ -78,6 +78,7 @@ Documentation
 * :doc:`bidding_agents`
 * :doc:`learning`
 * :doc:`assume`
+* :doc:`support_policies`
 
 .. toctree::
    :hidden:
@@ -90,6 +91,7 @@ Documentation
    bidding_agents
    learning
    assume
+   support_policies
 
 
 Indices and tables
diff --git a/docs/source/support_policies.rst b/docs/source/support_policies.rst
new file mode 100644
index 000000000..3a58abcf3
--- /dev/null
+++ b/docs/source/support_policies.rst
@@ -0,0 +1,72 @@
+.. SPDX-FileCopyrightText: ASSUME Developers
+..
+.. SPDX-License-Identifier: AGPL-3.0-or-later
+
+######################
+Support Policies
+######################
+
+Support Policies are a very important feature when considering different energy market designs.
+A support policy allows to influence the cash flow of unit, making decisions more profitable.
+
+One can differentiate between support policies which influence the available market capacity (product_type=`energy``) and those which do not.
+
+If the product_type is `energy`, the volume used for the contract can not be additionally bid on the EOM.
+
+
+Example Policies
+=====================================
+
+
+Feed-In-Tariff - FIT
+--------------------
+
+To create a Feed-In-Tariff (Einspeisevergütung) one has a contract which sets a fixed price for all produced energy.
+The energy can not be additionally sold somewhere else (product_type=`energy`).
+
+The Tariff is contracted at the beginning of the simulation and is valid for X days (1 year).
+
+The payout is executed on a different repetition schedule (monthly).
+For this, the output_agent is asked how much energy an agent produced in the timeframe.
+
+This is essentially the same as a Power Purchase Agreement (PPA), except that the payment of FIT is continuous and not monthly or yearly.
+
+
+Fixed Market Premium - MPFIX
+----------------------------
+
+A market premium is paid on top of the market results, based on the results.
+As the volume does not influcence the market bidding, the product_type is `financial_support`
+So a Market premium is contracted at the beginning of the simulation and is valid for X days (1 year).
+
+The payout is executed on a different repetition schedule (monthly).
+For this, the output_agent is asked how much energy an agent produced in the timeframe and what the clearing price of the market with name "EOM" was.
+The differences are then calculated and paid out on a monthly base.
+
+This mechanism is also known as One-Sided market premium
+
+Variable Market Premium - MPVAR
+-------------------------------
+
+The Idea of the variable market premium is to be based on some kind of market index (like ID3) received from the output agent.
+
+
+Capacity Premium - CP
+---------------------
+
+A capacity premium is paid on a yearly basis for a technology.
+This is done in € per installed MW of capacity.
+It allows to influence the financial flow of plants which would not be profitable.
+
+Contract for Differences - CfD
+------------------------------
+
+A fixed LCoE is set as a price, if an Agent accepts the CfD contract,
+it has to bid at the hourly EOM - the difference of the market result is paid/received to/from the contractor.
+
+
+Swing Contract
+--------------
+
+Actor
+^^^^^