Agent-Based Risk Simulation System Design Model for Generation-Side Electricity Market

In the background of searching a way for China’s electricity market reformation, a lot of researchers make focus on the stage of opening the generation side stage. Based on the detailed analysis of its structure, this paper first describes the generation

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Agent-Based Risk Simulation System Design Model for Generation-Side Electricity Market Xian Li and Cunbin Li

Abstract In the background of searching a way for China’s electricity market reformation, a lot of researchers make focus on the stage of opening the generation side stage. Based on the detailed analysis of its structure, this paper first describes the generation side electricity market operating model. And then a risk-based simulation system based on multi-agent technology is designed. By considering some of the issues that need to be paid attention in the traditional simulation process of electricity market, a risk-based simulation analysis software structure is schemed out. It can provide some technical support for market simulation system designers. Keywords Generation side Design model

 Electricity market  Risk  Simulation system 

20.1 Introduction After decades of power market reformation, many countries in the world have built their electricity market in line with their own characteristics. The effective operation of the electricity market strengthens the optimal allocation of power resources. And the resource utilization is also improved. China is also gradually establishing electricity market according to China’s national conditions. The

X. Li (&)  C. Li School of Economic and Management, North China Electric Power University, Beijing, China e-mail: [email protected] C. Li e-mail: [email protected]

Y. Yang and M. Ma (eds.), Proceedings of the 2nd International Conference on Green Communications and Networks 2012 (GCN 2012): Volume 1, Lecture Notes in Electrical Engineering 223, DOI: 10.1007/978-3-642-35419-9_20 Ó Springer-Verlag Berlin Heidelberg 2013

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reformation idea of China’s power market is roughly consist of three steps. The first step is the separation of power generation and power transmission–distribution companies, introduced competition in the generation side. The second step is to gradually open the gentian market to large power users which means that the large power users can directly purchase electricity from generation-side market. The third step is to establish and improve the distribution-side power market. However, market liberalization will lead to the occurrence of trading risk. So how to avoid market risks reasonable and effectively, and how to establish the reasonable electricity market operation rules is one of the problems to be solved. Artificial intelligence technology is now widely used in the electricity market simulation due to its autonomy, learning, and adaptability. T. Pinto, H. Morais using the multi-agent technology to model and simulate virtual power producers which are represented as coalitions of agents in electricity markets [1]. A. Azadeh proposed an innovative model of agent-based simulation based on ant colony optimization (ACO) algorithm in order to compare three available strategies of clearing wholesale electricity markets [2]. E. Guerci also used a multi-agent interacting framework to model power exchanges and a model o