A multi-agent approach to the deregulation and restructuring of power industry

In recent years, the electric utility industry throughout the world has been facing pressure to deregulate or restructure in order to increase its efficiency, to reduce operational costs or to give consumers more alternatives. The once centralized system planning and operation management must be remodelled to adapt to the new market environment. Subject to unavoidable constraints such as the capacity of generation stations, physical limitations of the transmission lines, and demand on days-ahead scheduling, the current trading mechanism needs to be revised so that any party can be involved in this free-market environment. The paper presents a multi-agent approach to resolve the multilateral trading problem. The authors have implemented a prototype based on bilateral Shapley value and Internet technologies. The prototype has been tested with a classical six-bus system.published_or_final_versio