Market oriented planning of power generation expansion using agent-based model

The deregulated electricity industry is characterized by structural change and strategic behaviors of market participants. There is a need of a novel model for medium and long term planning that could include games theoretical assumptions as well as other more complex assumptions. This paper proposes a new agent-based model designed to support decentralized planning activities in electricity supply industry, with a certain level of flexibility. In this model, the expansion planning method is developed around a multiagent simulation system where the interactions among agents in electricity market are simulated. An example is given to illustrate the proposed model.