A formal model for agent-based Coalition Formation in Electricity Markets

In recent times, several factors induced both a liberalization and decentralization of the conventional power supply system. However, considering the integration of small scale units like photovoltaic or wind energy plants, several technical and economic issues have yet to be addressed, like the achievement of market-induced capacity thresholds or a compensation of stochastic effects. To tackle respective problems, the paper at hand provides a formal model for a self-organization mechanism termed DYCE (Dynamic Coalition in Electricity Markets) allowing unit supervising agents to dynamically form coalitions for the supply and demand of power products on electricity markets while taking topology-related aspects into account.