Agent-Based Modeling for Studying the Impact of Capacity Mechanisms on Generation Expansion in Liberalized Electricity Market

Abstract

-This paper presents an approach to solve the long-term generation expansion planning problem of the restructured electricity industry using an agent-based environment. The proposed model simulates the generation investment decisions taken by a particular agent (i.e. a generating company) in a market environment taking into account its competitors' strategic investment. The investment decision of a particular company is modeled taking into account that such company has imperfect foresight on the future system development hence electricity prices. The delay in the construction of new plants is also explicitly modeled, in order to compute accurately the yearly revenues of each agent. On top of a conventional energy market, several capacity incentive mechanisms including capacity payment and capacity market are simulated, so as to assess their impact on the investment promotion for generation expansion. Results provide insight on the investment cycles as well as dynamic system behavior of long-term generation expansion planning in a competitive electricity industry.

Optimal reactive power pricing with transformer variable taps using genetic algorithm

“…The term "electricity industry" is used for such systems. At present, in many countries of the world such as Iran, the operation mechanism of power system is still traditional [5], [6].…”

“…These changes are referred to as "restructuring". Restructuring in the electricity industry implies a change in the structure of regulations and economic activities that the government sets to better control and operate the electricity industry [6], [7]. Depending on the objectives, in the restructured electricity industry, the restructuring can be varied.…”