Bilateral negotiations for electricity market by adaptive agent-tracking strategy

Imran, Kashif; Zhang, Jiangfeng; Pal, Anamitra; Khattak, Abraiz; Ullah, Kafait; Baig, Sherjeel Mahmood

doi:10.1016/j.epsr.2020.106390

Cited by 21 publications

(6 citation statements)

References 26 publications

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“…Karandikar et al [32], introduced risk-constrained methodology for bilateral contract evaluation in competitive power markets, estimation of payoffs and risk quantification for electricity retailers and designed a framework for retailers to choose optimal bilateral contracts for risk-constrained payoff. A novel utility-based and adaptive agent-tracking strategy was presented by Kashif Imran et al [33] for bilateral negotiations. Empower GenCo agents to swing bilateral negotiation results in their favor.…”

Section: A Motivation and Backgroundmentioning

confidence: 99%

Auction-Based Single-Sided Bidding Electricity Market: An Alternative to the Bilateral Contractual Energy Trading Model in a Grid-Tied Microgrid

Manjunatha,

Purushothama,

Nanjappa

et al. 2024

IEEE Access

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An auction-based single-sided bidding energy transaction mechanism in a grid-connected microgrid (MG) using a multi-agent system allows for better profit sharing for all stakeholders. This can replace existing bilateral contractual trade between the stakeholders. In the bilateral contractual energy trade model, energy transactions are either long-term, medium-term, or short-term agreements or bilateral negotiations between the stakeholders based on physical limits. Whereas in an auction-based mechanism, the energy transaction is in real time based on bidding strategies and supply-demand mismatches among the stakeholders. This work proposes a single-sided auction mechanism (SSAM) to clear the market based on the asking price of the seller and the supply-demand mismatch of the microgrid. In addition, the new two bidding algorithms, namely the linear bidding algorithm (LBA) and the fuzzy logic-based bidding algorithm (FLBA), are developed for sellers to select the 'ask' quotes. The proposed auction-based, single-sided bidding energy transaction mechanism is tested and validated in the existing Malnad College of Engineering (MCE) gridtied MG (bilateral contractual) trading model, Hassan-573201, Karnataka, India. The energy market simulation results yield promising findings, highlighting the advancement of proposed SSAM and bidding strategies in boosting the profit margin of sellers.

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Section: A Motivation and Backgroundmentioning

confidence: 99%

Auction-Based Single-Sided Bidding Electricity Market: An Alternative to the Bilateral Contractual Energy Trading Model in a Grid-Tied Microgrid

Manjunatha,

Purushothama,

Nanjappa

et al. 2024

IEEE Access

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“…Since there is no middleperson who will earn profit in the trading, the direct power purchase transaction can make higher profit margins. To allocate such profit reasonably, energy generations and large consumers can make bilateral contract with Nash bargaining process to guarantee the interest of both sides [115].…”

Section: ) Cooperative Gamementioning

confidence: 99%

Game-Theoretic Applications for Decision-Making Behavior on the Energy Demand Side: a Systematic Review

Ji,

Liu,

Tang

2024

Prot. Control Mod. Power Syst.

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As an essential characteristic of the smart grid, energy demand users are being transformed from passive roles to active decision-makers. To analyze their decision-making behaviors, game theory has been widely applied on the demand side. This paper focuses on the classification and in-depth analysis of recent studies that propose game-theoretic approaches for decision optimization of multiple demand users. This analysis classifies scenarios into various game participant categories, including distributed energy prosumers, small-and middle-sized users, and large energy consumers. The in-depth analysis of each scenario, covering non-cooperative game, cooperative game, Stackelberg game, Bayesian game, and evolutionary game, is conducted by analyzing market operation mechanisms, model assumptions/formulations, and solution methods. Based on a comprehensive review of such studies, it is concluded that game-theoretic applications on the demand side can benefit both the grid and the users, e.g., reductions in the peak-to-average ratios and energy costs of the users. The prospects for the applications of game theory on the demand side are discussed, including application scenarios and methodologies. The overview presented in this paper is expected to support researchers in comprehending typical game-theoretic concepts, keeping with the latest research developments, and identifying new and innovative applications for the energy demand side.

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“…[24] addressed the challenge of using software agents for the negotiation of bilateral contracts by presenting a multi-agent energy market. [25] developed utility-based and adaptive agent-tracking strategies for bilateral negotiations. Furthermore, [26] proposed a complex network approach for assessing bilateral trading patterns under physical network constraints.…”

Section: Background and Motivationmentioning

confidence: 99%

An energy system model for mixed bilateral and pool markets

Wang¹,

Verzijlbergh²,

Heijnen³

et al. 2022

Preprint

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Investments into renewable energy are increasing rapidly around the world. Energy system models are able to provide insights into optimal investment capacities and thus are widely used to aid the long-term investment decision-making under an electricity market environment. Existing energy system models, however, fail to consider bilateral electricity markets while in reality, these constitute a major part of all energy trades. In this paper, we propose an improved energy system model that endogenously considers mixed bilateral and pool markets. In this model, we also introduce three externality cost items that account for the social cost of technologies, carbon taxes/renewable energy subsidies, and the bilateral product differentiation in the bilateral market, respectively. We start with an equilibrium problem formulation for different market players and next, an equivalent optimization problem is presented. Then, a case study of the pan-European market to reach 95% emission reduction in 2050 is conducted to demonstrate the model. Different scenarios are constructed to showcase two different usages of product differentiation in the bilateral market, i.e., willingness to pay and exogenous costs. Our main conclusion is that the inclusion of mixed bilateral and pool markets into our enriched energy system model significantly changed the optimal investment capacities, compared to benchmark results from the existing, conventional energy system model. This shows that the inclusion of the bilateral market is of key importance in future investment considerations. Our model is the first of its kind to include this important and realistic bilateral market in energy system models.

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Bilateral negotiations for electricity market by adaptive agent-tracking strategy

Cited by 21 publications

References 26 publications

Auction-Based Single-Sided Bidding Electricity Market: An Alternative to the Bilateral Contractual Energy Trading Model in a Grid-Tied Microgrid

Auction-Based Single-Sided Bidding Electricity Market: An Alternative to the Bilateral Contractual Energy Trading Model in a Grid-Tied Microgrid

Game-Theoretic Applications for Decision-Making Behavior on the Energy Demand Side: a Systematic Review

An energy system model for mixed bilateral and pool markets

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