Advertisement

Electricity Markets and Intelligent Agents Part I: Market Architecture and Structure

  • Fernando LopesEmail author
Chapter
First Online:
Part of the Studies in Systems, Decision and Control book series (SSDC, volume 144)

Abstract

The electric power industry has undergone a sweep restructuring resulting in the emergence of electricity markets (EMs) worldwide. The trend towards EMs has led to extensive efforts by the research community to develop optimization and equilibrium models adapted to the new competitive industry. The complexity of EMs calls, however, for richer and more flexible modeling techniques. Agent-based simulation is a relatively new approach relying on advanced social science methods as well as established engineering modeling techniques. The agent-based approach presents itself as a promising approach to accurately model and analyze in detail the behavior of EMs over time. Agent-based simulation of EMs is, at the time of writing, an active area of research and a number of prominent models and systems have been proposed in energy-related journals. These high-quality scientific contributions exhibit fairly different features and make use of a diverse range of concepts. Currently, there seems to be no agreed framework to compare the usage of specific concepts in one contribution with usage in other contributions, nor to compare disparate research efforts. This chapter and its companion (Chap.  3) claim that the development of such a framework can be an important step to provide a coherent set of concepts related to the area, to assess progress in the area, and to facilitate the development of future models and systems. Accordingly, this chapter (Part I) and Chap.  3 (Part II) introduce a generic framework for agent-based simulation of EMs. The complete framework includes three groups (or categories) of dimensions: market architecture, market structure and software agents. This chapter describes, in considerable detail, the components of the first two groups of dimensions, notably the architecture and core structure of power markets. The third and last group of dimensions is the subject of Chap.  3.

This is a preview of subscription content, log in to check access.

Notes

Acknowledgements

This work was performed under the project MAN-REM: Multi-agent Negotiation and Risk Management in Electricity Markets (FCOMP-01-0124-FEDER-020397), supported by FEDER funds, through the program COMPETE (“Programa Operacional Temático Factores de Competividade”), and also National funds, through FCT (“Fundação para a Ciência e a Tecnologia”). The author wishes to acknowledge the valuable comments and suggestions made by Hannele Holttinen, from the VTT Technical Research Centre of Finland, João Santana and Rui Castro, from INESC-ID and also the Technical University of Lisbon (IST), and João Martins and Anabela Pronto, from the NOVA University of Lisbon.

References

  1. 1.
    Stoft, S.: Power System Economics: Designing Markets for Electricity. IEEE Press and Wiley Interscience, New York (2002)CrossRefGoogle Scholar
  2. 2.
    Ventosa, M., Baíllo, A., Ramos, A., Rivier, M.: Electricity market modeling trends. Energy Policy 33(7), 897–913 (2005)CrossRefGoogle Scholar
  3. 3.
    Kahn, E.P.: Numerical techniques for analyzing market power in electricity. Electr. J. 11(6), 34–43 (1998)Google Scholar
  4. 4.
    Hobbs, B.F.: Linear complementarity models of nash-cournot competition in bilateral and POOLCO power markets. IEEE Trans. Power Syst. 16(2), 194–202 (2001)CrossRefGoogle Scholar
  5. 5.
    Day, C.J., Hobbs, B.F.: Oligopolistic competition in power networks: a conjectured supply function approach. IEEE Trans. Power Syst. 17(3), 597–607 (2002)CrossRefGoogle Scholar
  6. 6.
    Nash, J.F.: The bargaining problem. Econometrica 18(2), 155–162 (1950)MathSciNetCrossRefzbMATHGoogle Scholar
  7. 7.
    Weidlich, A., Veit, D.: A critical survey of agent-based wholesale electricity market models. Energy Econ. 30, 1728–1759 (2008)CrossRefGoogle Scholar
  8. 8.
    Rothkopf, M.H.: Daily repetition: a neglected factor in the analysis of electricity auctions. Electr. J. 12(3), 60–70 (1999)Google Scholar
  9. 9.
    Koritarov, V.: Real-world market representation with agents: modeling the electricity market as a complex adaptive system with an agent-based approach. IEEE Power Energy Mag. 2(4), 39–46 (2004)CrossRefGoogle Scholar
  10. 10.
    Wooldridge, M.: An Introduction to Multi-agent Systems. Wiley, Chichester (2009)Google Scholar
  11. 11.
    Jennings, N.R.: On agent-based software engineering. Artif. Intell. 117, 277–296 (2000)CrossRefzbMATHGoogle Scholar
  12. 12.
    Jennings, N.R., Sycara, K., Wooldridge, M.: A roadmap of agent research and development. Auton. Agents Multi-agent Syst. 1, 7–38 (1998)CrossRefGoogle Scholar
  13. 13.
    Lopes, F., Coelho, H., Santana, J.: A framework for agent-based electricity markets: preliminary report. In: Spies, M., Wagner, R., Tjoa, A. (eds.) 26th Database and Expert Systems Applications (DEXA 2015), pp. 57–61. IEEE (2015)Google Scholar
  14. 14.
    Lopes, F., Coelho, H., Santana, J.: Towards a conceptual framework for agent-based electricity markets. In: Tjoa, A., Vale, Z., Wagner, R., (eds.) 27th Database and Expert Systems Applications (DEXA 2016), pp. 143–147. IEEE (2016)Google Scholar
  15. 15.
    Bodie, Z., Kane, A., Marcus, A.: Investments. McGraw-Hill Education, New York (2014)Google Scholar
  16. 16.
    Dodd, R.: The structure of OTC derivatives markets. The Financier 9(1–4), 1–5 (2002)Google Scholar
  17. 17.
    Shahidehpour, M., Yamin, H., Li, Z.: Market Operations in Electric Power Systems. Wiley, Chichester (2002)CrossRefGoogle Scholar
  18. 18.
    Hunt, S.: Making Competition Work in Electricity. Wiley, Chichester (2002)Google Scholar
  19. 19.
    Kirschen, D., Strbac, G.: Fundamentals of Power System Economics. Wiley, Chichester (2004)CrossRefGoogle Scholar
  20. 20.
    Zhang, X.-P. (ed.): Restructured Electric Power Systems. Wiley, Chichester (2010)Google Scholar
  21. 21.
    Wood, A., Wollenberg, B., Sheblé, G.: Power Generation, Operation, and Control. Wiley, Chichester (2014)Google Scholar
  22. 22.
    Hull, J.: Options, Futures, and Other Derivatives. Pearson Education, New York (2015)zbMATHGoogle Scholar
  23. 23.
    Schweppe, F., Caramanis, M., Tabors, R., Bohn, R.: Spot Pricing of Electricity. Kluwer Academic Publishers, Boston (1988)CrossRefGoogle Scholar
  24. 24.
    Hogan, W.: Competitive Electricity Market Design: A Wholesale Primer. Harvard University, Cambridge (1998)Google Scholar
  25. 25.
    Cain, M., Alvarado, F.: Implications of cost and bid format on electricity market studies: linear versus quadratic costs. In: Large Engineering systems Conference on Power Engineering (LESCOPE-04), pp. 2–6. IEEE (2004)Google Scholar
  26. 26.
    Cardell, J., Hitt, C., Hogan, W.: Market power and strategic interaction in electricity networks. Resour. Energy Econ. 19, 109–137 (1997)CrossRefGoogle Scholar
  27. 27.
    Clewlow, L., Strickland, C.: Energy Derivatives: Pricing and Risk Management. Lacima Publications, London (1998)Google Scholar
  28. 28.
    Rahimi, F., Vojdani, A.: Meet the emerging transmission market segments. IEEE Comput. Appl. Power 12(1), 26–32 (1999)CrossRefGoogle Scholar
  29. 29.
    Srivastava, A., Kamalasadan, S., Patel, D., Sankar, S., Al-Olimat, K.: Electricity markets: an overview and comparative study. Int. J. Energy Sect. Manag. 5(2), 169–200 (2011)CrossRefGoogle Scholar
  30. 30.
    Rahimi, F., Ipakchi, A.: Transactive energy techniques: closing the gap between wholesale and retail markets. Electr. J. 25(8), 29–35 (2012)Google Scholar
  31. 31.
    Conejo, A., Carrión, M., Morales, J.: Decision Making Under Uncertainty in Electricity Markets. Springer, Heidelberg (2010)CrossRefzbMATHGoogle Scholar
  32. 32.
    Cheung, K., Rosenwald, G., Wang, X., Sun, D.: Restructured electric power systems and electricity markets. In: Zhang, X.-P. (ed.) Restructured Electric Power Systems: Analysis of Electricity Markets with Equilibrium Models, pp. 2–6. Wiley, New Jersey (2010)Google Scholar

Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  1. 1.LNEG–National Laboratory of Energy and GeologyLisbonPortugal

Personalised recommendations

Cite chapter

Buy options