Multi-agent Simulation of Bilateral Contracting in Competitive Electricity Markets

Author

Lopes, Filipa ; Algarvio, Hugo ; Sousa, Jorge A. M. ; Coelho, Helder ; Pinto, Tiago ; Santos, Giovanni ; Vale, Zita ; Praca, Isabel

Author_Institution

LNEG Nat. Res. Inst., Lisbon, Portugal

fYear

2014

fDate

1-5 Sept. 2014

Firstpage

131

Lastpage

135

Abstract

Traditional vertically integrated power utilities around the world have evolved from monopoly structures to open markets that promote competition among suppliers and provide consumers with a choice of services. Market forces drive the price of electricity and reduce the net cost through increased competition. Electricity can be traded in both organized markets or using forward bilateral contracts. This article focuses on bilateral contracts and describes some important features of an agent-based system for bilateral trading in competitive markets. Special attention is devoted to the negotiation process, demand response in bilateral contracting, and risk management. The article also presents a case study on forward bilateral contracting: a retailer agent and a customer agent negotiate a 24h-rate tariff.

Keywords

contracts; monopoly; multi-agent systems; power engineering computing; power markets; retail data processing; risk management; tariffs; 24h-rate tariff; agent-based system; bilateral trading; competitive markets; customer agent; demand response; electricity markets; electricity pricing; forward bilateral contracts; monopoly structures; multiagent simulation; negotiation process; net cost reduce; retailer agent; risk management; vertically integrated power utilities; Conferences; Contracts; Electricity; Electricity supply industry; Load management; Proposals; Risk management; Energy markets; bilateral contracting; demand response; multi-agent systems; risk management; trading strategies;

fLanguage

English

Publisher

ieee

Conference_Titel

Database and Expert Systems Applications (DEXA), 2014 25th International Workshop on

Conference_Location

Munich

ISSN

1529-4188

Print_ISBN

978-1-4799-5721-7

Type

conf

DOI

10.1109/DEXA.2014.40

Filename

6974839