An Agent-Based Decentralisation Approach for the Electricity Power Market

Abstract

This document proposes a agent-based decentralisation methodology for the electricity power market. To this end a graph is built where the nodes represent each variable and the values associated to it. The links are those non-diagonal elements within ??(?(z)). Then, a decentralization process is applied based on a multi-agent approach where the system is decomposed by assigning a subset of node variables and links to each one of the agents i.e. generator, nodes, lines. Two basic points are observed in the decomposition procedure. First, the agent model is kept simple. Second, the agents’ private data are not intercommunicated. The application of this decomposition has a positive side effect: The complexity of the system, as a result of the network interconnectivity, is converted into local intercommunication tasks.