Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity Markets
In liberalized markets, consumers can choose their electricity suppliers or be part of an energy community. The problem with communities is that they may not have enough weight to trade in markets, which can be overcome by forming coalitions. Electricity is traded in spot markets or through bilatera...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-05-01
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| Series: | Electronics |
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| Online Access: | https://www.mdpi.com/2079-9292/12/11/2367 |
| _version_ | 1797597722807631872 |
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| author | Hugo Algarvio |
| author_facet | Hugo Algarvio |
| author_sort | Hugo Algarvio |
| collection | DOAJ |
| description | In liberalized markets, consumers can choose their electricity suppliers or be part of an energy community. The problem with communities is that they may not have enough weight to trade in markets, which can be overcome by forming coalitions. Electricity is traded in spot markets or through bilateral contracts involving consumers and suppliers. This paper is devoted to bilateral contracting, modeled as a negotiation process involving an iterative exchange of offers and counter-offers. It focuses on coalitions of energy communities. Specifically, it presents team and single-agent negotiation models, where each consumer has strategies, tactics, and decision models. Coalition agents are equipped with intra-team strategies and decision protocols. It also describes a study of bilateral contracts involving a seller agent and a coalition of energy communities. By allying into a coalition, members of energy communities reduced their average costs for electricity by between 2% (large consumers) and 64% (small consumers) according to their consumption. Their levelized cost reduction was 19%. The results demonstrate the power of coalitions when negotiating bilateral contracts and the benefit of a low-consumption members alliance with larger players. |
| first_indexed | 2024-03-11T03:09:30Z |
| format | Article |
| id | doaj.art-5bc38ce2e504414daf5832d08e4d4070 |
| institution | Directory Open Access Journal |
| issn | 2079-9292 |
| language | English |
| last_indexed | 2024-03-11T03:09:30Z |
| publishDate | 2023-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Electronics |
| spelling | doaj.art-5bc38ce2e504414daf5832d08e4d40702023-11-18T07:43:59ZengMDPI AGElectronics2079-92922023-05-011211236710.3390/electronics12112367Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity MarketsHugo Algarvio0LNEG—National Laboratory of Energy and Geology, Est. Paço Lumiar 22, 1649-038 Lisbon, PortugalIn liberalized markets, consumers can choose their electricity suppliers or be part of an energy community. The problem with communities is that they may not have enough weight to trade in markets, which can be overcome by forming coalitions. Electricity is traded in spot markets or through bilateral contracts involving consumers and suppliers. This paper is devoted to bilateral contracting, modeled as a negotiation process involving an iterative exchange of offers and counter-offers. It focuses on coalitions of energy communities. Specifically, it presents team and single-agent negotiation models, where each consumer has strategies, tactics, and decision models. Coalition agents are equipped with intra-team strategies and decision protocols. It also describes a study of bilateral contracts involving a seller agent and a coalition of energy communities. By allying into a coalition, members of energy communities reduced their average costs for electricity by between 2% (large consumers) and 64% (small consumers) according to their consumption. Their levelized cost reduction was 19%. The results demonstrate the power of coalitions when negotiating bilateral contracts and the benefit of a low-consumption members alliance with larger players.https://www.mdpi.com/2079-9292/12/11/2367bilateral contractscitizen energy communitieselectricity marketssingle-agent negotiation modelteam decision protocols and strategies |
| spellingShingle | Hugo Algarvio Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity Markets Electronics bilateral contracts citizen energy communities electricity markets single-agent negotiation model team decision protocols and strategies |
| title | Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity Markets |
| title_full | Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity Markets |
| title_fullStr | Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity Markets |
| title_full_unstemmed | Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity Markets |
| title_short | Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity Markets |
| title_sort | automated bilateral trading of energy by alliances in multi agent electricity markets |
| topic | bilateral contracts citizen energy communities electricity markets single-agent negotiation model team decision protocols and strategies |
| url | https://www.mdpi.com/2079-9292/12/11/2367 |
| work_keys_str_mv | AT hugoalgarvio automatedbilateraltradingofenergybyalliancesinmultiagentelectricitymarkets |