[KSCI] Korea Science Citation Index Service

http://dx.doi.org/10.5370/JEET.2015.10.4.1460

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

Dahlan, N.Y. (Faculty of Electrical Engineering, Universiti Teknologi MARA (UiTM))

Publication Information

Journal of Electrical Engineering and Technology / v.10, no.4, 2015 , pp. 1460-1470 More about this Journal

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.

Keywords

Agent-based modeling; Generation expansion planning; Energy-only market; Capacity payment; Capacity market; Liberalized electricity market;

Citations & Related Records

Reference

1	Choong-Kyo Han, Don hur, Jin-Man Sohn, Jong-Keun Park, “Assessing the Impacts of Capacity Mechanisms on Generation Adequacy with Dynamic Simulations”, IEEE Transactions on Power Systems, 201.
2	Ming-Che Hu, Benjamin F. Hobbs, “Dynamic Analysis of Demand Curve Adjustment and Learning in Response to Generation Capacity Cost Dynamics in the PJM Capacity Market”, PES General Meeting, 2008.
3	Benjamin F. Hobbs, Ming-Che Hu, Javier G. Iñón, Steven E. Stoft, Murty P. Bhavaraju, “A Dynamic Analysis of a Demand Curve-Based Capacity Market Proposal: The PJM Reliability Pricing Model”, IEEE Trans. Power System, 22, 2007.
4	International Energy Agency (IEA), Security of Supply in Electricity Markets: Evidence and Policy Issues, Organization for Economic Co-operation and Development (OECD), 2002.
5	R.N.A. Roy Billinton, “Reliability Evaluation of Power Systems”, Springer, 1994.
6	Zhi Zhou, Fei Zhao, “Agent-Based Electricity Market Simulation With Demand Response from Commercial Buildings”, IEEE Transaction on Smart Grid, 2, 2011.
7	Audun Botterud, Matthew R.Mahalik, Thomas D. Veselka, Heon-Su Ryu, Ki-Won Sohn, “Multi-Agent Simulation of Generation Expansion in Electricity Market”, PES General Meeting, IEEE, 2007.
8	Miguel A. Ortega-Vazquez, DS Kirschen, “Assessment of Generation Expansion Mechanisms using Multi-Agent Systems”, PES General Meeting, 2008.
9	Edgard Gnansounou, Jun Dong, Samuel Pierre, Alejandro Quintero, “Market Oriented Planning of Power Generation Expansion Using Agent-Based Model”, Power System Conference and Exposition, IEEE PES, 2004.
10	Peter Cramton, Steven Stoft, “A Capacity Market that Makes Sense”, Electricity Journal, 18, 2005
11	Charles M. Macal, Michael J.North, “Tutorial on Agent-Based Modeling and Simulation Part 2: How to Model with Agents”, Proceedings of the 2006 Winter Simulation Conference, 2006.
12	Shmuel S. Oren, “Ensuring Generation Adequacy in Competitive Electricity Markets”, University of California, 2003.
13	Robert Stoddard, Seabron Adamson, “Comparing Capacity Market and Payment Designs for Ensuring Supply Adequacy”, 42nd Hawaii International Conference on System Sciences, 2009.
14	Derek W. Bunn, Erik R.Larsen, “Sensitivity of Reserve Margin to Factors Influencing Investment Behaviour in the Electricity Market of England and Wales”, Energy Policy, 20, 1992.
15	S. Widergren, J.Sun, L. Tesfatsion, “Market Design Test Environment”, IEEE PES General Meeting 2006.
16	M. Mahvi, M.M.Ardehali, “Optimal Bidding Strategy in a Competitive Electricity Market Based on Agent-Based Approach and Numerical Sensitivity Analysis”, Energy, 36, 2011.
17	Zhen Liu, Jianming Yan, Kaiwei Zhu, Gangqing Pu, “Multi-agent Based Experimental Analysis on Bidding Mechanism in Electricity Auction Markets”, International Journal of Electrical Power & Energy Systems, 43, 2012.
18	T. Pinto, H.Morais, P. Oliveira, Z. Vale, I. Praca, C. Ramos, “A New Approach for Multi-agent Coalition Formation and Management in the Scope of Electricity Markets”, Energy, 36, 2011
19	Anthony J.Bagnall, George D. Smith, “A Multiagent Model of the UK Market in Electricity Generation”, IEEE Transaction on Evolutionary Computation, 2005.
20	Thomas Veselka, Gale Boyd, Guenter Conzelmann, Vladimir Koritarov, Charles Macal, Michael North, Benjamin Schoepfle, Prakash Thimmapuram, “Simulating the Behavior of Electricity Market with an Agent-Based Methodology: The Electric Market Complex Adaptive System (EMCAS) Model”, Proceedings of the 22nd Annual Conference, 2002.
21	Isabel Praça, Carlos Ramos, Zita Vale, “MASCEM: A Multiagent System that Simulates Competitive Electricity Market”, IEEE Transactions Intelligent System, 18, 2003.
22	Anthony J.Bagnall, George D. Smith, “Game Playing with Autonomous Adaptive Agents in a Simplified Economic Model of the UK Market in Electricity Generation”, Power System Technology, 2000.
23	A. Ford, “Cycles in Competitive Electricity Markets: A Simulation Study of the Western United States”, Energy Policy, 27, 1999.
24	Gong Li, Jing Shi, “Agent-Based Modeling for Trading Wind Power with Uncertainty in the Day-ahead Wholesale Electricity Markets of Single-sided Auctions”, Applied Energy, 99, 2012.
25	A. Botterud, “Long Term Planning in Restructured Power Systems, Department of Electrical Power Engineering”, The Norwegian University of Science and Technology (NTNU), 2003.
26	E. Alishahi, M. Parsa Moghaddam, E. Alishahi, M.K. Sheikh-El_Eslami, “A System Synamics Approach for Evaluating the Optimum Value of Reliability-Based Incentive Mechanism for Wind Generation in GEP”, Power Engineering Society, PES General Meeting 2012.
27	A. Ford, “Waiting for the Boom: A Simulation Study of Power Plant Construction in California”, Energy Policy, 29, 2001.
28	Prajit K. Dutta, “Strategies and Games: Theory and Practice”, The MIT Press, 1999.
29	John Bower, Derek Bunn, “A Model-Based Comparison of Pool and Bilateral Market Mechanisms for Electricity Trading”, Energy Journal, 21, 2000.
30	Derek W.Bunn, Fernando S.Oliveira, “Agent-Based Simulation-An Application to the New Electricity Trading Arrangements of England and Wales”, IEEE Transactions on Evolutionary Computation, 2001.
31	D.W. Bunn, M. Martoccia., “Unilateral and Collusive Market Power in the Electricity Pool of England and Wales”, Journal of Energy Economics, 27, 2005.
32	Vishnu Nanduri, T.K. Das, “Game Theoretic Approach for Generation Capacity Expansion in Restructured Power Markets”, PES General Meeting Pittsburgh, 2008.
33	Ing. D. Juan Jose Sanchez Dominguez, “Strategic Analysis of the Long-Term Planning of Electric Generation Capacity in Liberalized Electricity Markets”, Instituto de Investigacion Tecnologica, Universidad Pontificia Comillas De Madrid, Madrid, 2008.
34	Angela S. Chuang, Felix Wu, Pravin Varaiya, “A Game-Theoretic Model for Generation Expansion Planning: Problem Formulation and Numerical Comparisons”, IEEE Transactions on Power Systems, 16, 2001.
35	F.H. Murphy, Yves Smeers, “Generation Capacity Expansion in Imperfectly Competitive Restructured Electricity Markets”, Operation Research, 53, 2002.
36	Efraim Centeno, Javier Renesas, Sonja Wogrin, Julian Barquin, “Representation of Electricity Generation Capacity Expansion by Means of Game Theory Models”, 8th International Conference on the European Energy Market (EEM), 2011.
37	A.A. Ladjici, M. Boudour, “Nash-Cournot Equilibrium of a Deregulated Electricity Market Using Competitive Coevolutionary Algorithms”, Electric Power Systems Research, 81, 2011.
38	Cristian A. Diaz, Jose Villa, Fco. Alberto Campos, M. Angel Rodriguez, “A New Algorithm to Compute Conjectured Suppply Function Equilibrium”, Electricity Markets, Electric Power System Research, 81, 2011.
39	Damoun Langary, Nasser Sadati, Ali Mohammad Ranjbar, “Direct Approach in Computing Robust Nash Strategies for Generating Companies in Electricity Markets”, International Journal of Electrical Power & Energy Systems, 54, 2014.