Agent-Based Approach to Handle Business Complexity in U.S. Wholesale Power Trading

Abstract

Abstract--This study documents the practicality of an agentbased approach by examining how two groups of agents handle business complexity related to power trading. Three important findings are identified in this research. First, the proposed approach can estimate fluctuations of electricity prices as well as other well-known methods such as neural networks and genetic algorithms. Second, multiple learning capabilities incorporated in adaptive agents do not have an advantage over limited learning capabilities in predicting the market price of electricity. Finally, a theoretical extension of multiple learning capabilities may have potential for developing the agent-based approach for power trading.

The rise of AGILE demand response: Enabler and foundation for change

“…(1) Modeling and Simulation [41][42][43], (2) Protection [44,45], (3) Monitoring and Diagnostics [46][47][48], and (4) Distributed Control [49][50][51][52]. However, in order to achieve agility, the MAS should be capable to encompass all of its application areas.…”

SIMBA: A simulator for business education and research

“…The agent approach is widely applied to business problems and decision support systems [5,23]. The paper [33] studies how two groups of agents handle business complexity related to power trading in the US. The proposed approach can estimate fluctuations of elec tricity prices as well as other methods such as neural networks and genetic algorithms.…”

“…•Business intelligence: [24,25] •Multi-agent systems and business intelligence: [3,5,23,33] •Multi-agent Systems systems in business simulators: [34,35] •Autonomous decision-making in business simulators: [20,21] where the authors propose the use of a multi agent intelligent sim ulator to numerically examine several reasons to explain why the electricity crisis happened between May 2000 and January 2001 in California. This simulator explains the price fluctuation of wholesale electricity during the crisis with high accuracy.…”

Wholesale Power Price Dynamics Under Transmission Line Limits: A Use of an Agent-Based Intelligent Simulator

“…To overcome the difficulty, a new agent-based simulator [2][3] was developed to investigate a dynamic fluctuation of electricity price. The proposed simulator provided a high level of estimation accuracy to predict a price fluctuation of electricity.…”

“…The proposed simulator provided a high level of estimation accuracy to predict a price fluctuation of electricity. However, [2][3] still had a major problem because those did not incorporate a transmission grid system in the power trading scheme, even though the influence of capacity-limited links on market price of electricity was widely known [4][5].…”