Bilateral negotiations for electricity market by adaptive agent-tracking strategy

Imran, K; Zhang, J; Pal, A; Khattak, A; Ullah, K; Baig, SM

Bilateral negotiations for electricity market by adaptive agent-tracking strategy

Imran, K Zhang, J

Pal, A Khattak, A Ullah, K Baig, SM

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Publisher:: ELSEVIER SCIENCE SA
Publication Type:: Journal Article
Citation:: Electric Power Systems Research, 2020, 186
Issue Date:: 2020-09-01

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Field	Value	Language
dc.contributor.author	Imran, K
dc.contributor.author	Zhang, J https://orcid.org/0000-0003-2616-6722
dc.contributor.author	Pal, A
dc.contributor.author	Khattak, A
dc.contributor.author	Ullah, K
dc.contributor.author	Baig, SM
dc.date.accessioned	2020-11-06T19:52:20Z
dc.date.available	2020-11-06T19:52:20Z
dc.date.issued	2020-09-01
dc.identifier.citation	Electric Power Systems Research, 2020, 186
dc.identifier.issn	0378-7796
dc.identifier.issn	1873-2046
dc.identifier.uri	http://hdl.handle.net/10453/143802
dc.description.abstract	© 2020 Bilateral transactions hedge both sides against uncertain price and volume risks of day-ahead auction and make up major portions of trading in electricity markets. Peer-to-peer bilateral transactions avoid broker fees but involve challenges of balancing between cooperative and competitive strategies for multi-round negotiations. To solve these challenges, this paper develops novel utility-based and adaptive agent-tracking strategies for bilateral negotiations. Relying on bilateral transaction volume and utility curves determined over a price range during unilateral pre-negotiation, utility-based strategies are developed for generation company (GenCo) agent (load serving entity (LSE) agent) to offer (bid) volumes and prices during multi-round bilateral negotiations. GenCo agent is also equipped with a new adaptive agent-tracking strategy that estimates reservation price of each LSE agent by Bayesian learning and updates the estimates in each round. The adaptive agent-tracking strategy facilitates cooperative yet competitive responses. Integration of new bilateral negotiation strategies with existing day-ahead auction in a renowned agent-based platform also enables combined simulation of the two market types. The case study demonstrates that the adaptive agent-tracking strategy empowers GenCoagents to swing bilateral negotiation results in their favor and yield 7% more payoff than the utility-based strategy, while achieving 100% improvement in frequency of failure of negotiation.
dc.language	English
dc.publisher	ELSEVIER SCIENCE SA
dc.relation.ispartof	Electric Power Systems Research
dc.relation.isbasedon	10.1016/j.epsr.2020.106390
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	0906 Electrical and Electronic Engineering
dc.subject.classification	Energy
dc.title	Bilateral negotiations for electricity market by adaptive agent-tracking strategy
dc.type	Journal Article
utslib.citation.volume	186
utslib.for	0906 Electrical and Electronic Engineering
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology/School of Electrical and Data Engineering
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
dc.date.updated	2020-11-06T19:52:17Z
pubs.publication-status	Published
pubs.volume	186

Abstract:

© 2020 Bilateral transactions hedge both sides against uncertain price and volume risks of day-ahead auction and make up major portions of trading in electricity markets. Peer-to-peer bilateral transactions avoid broker fees but involve challenges of balancing between cooperative and competitive strategies for multi-round negotiations. To solve these challenges, this paper develops novel utility-based and adaptive agent-tracking strategies for bilateral negotiations. Relying on bilateral transaction volume and utility curves determined over a price range during unilateral pre-negotiation, utility-based strategies are developed for generation company (GenCo) agent (load serving entity (LSE) agent) to offer (bid) volumes and prices during multi-round bilateral negotiations. GenCo agent is also equipped with a new adaptive agent-tracking strategy that estimates reservation price of each LSE agent by Bayesian learning and updates the estimates in each round. The adaptive agent-tracking strategy facilitates cooperative yet competitive responses. Integration of new bilateral negotiation strategies with existing day-ahead auction in a renowned agent-based platform also enables combined simulation of the two market types. The case study demonstrates that the adaptive agent-tracking strategy empowers GenCoagents to swing bilateral negotiation results in their favor and yield 7% more payoff than the utility-based strategy, while achieving 100% improvement in frequency of failure of negotiation.

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http://hdl.handle.net/10453/143802