Testing the Scenario Analysis Algorithm of an Agent- Based Simulator for Competitive Electricity Markets

The main goal of MASCEM – Multi-Agent Simulator of Competitive Electricity Markets, is to give electricity market entities a tool to support their decisions and to obtain knowledge about market behaviour and evolution. Intelligent agents with strategic behaviour represent entities from electricity markets. In this paper we propose some illustrative scenarios to explain and take some conclusions about MASCEM agent’s Scenario Analysis Algorithm behaviour. INTRODUCTION The electricity industry is becoming competitive; a market environment is replacing the traditional centralized-operation approach. New entities have emerged and the role of existing ones has changed. There are different market rules, based on different negotiation mechanisms. In this context, new modelling approaches that simulate how electric power markets might evolve over time and how market participants might react to the changing environment are welcome. Electricity market entities are heterogeneous and autonomous, have their own objectives and follow their business strategies in order to reach them; they interact among them in a dynamically changing environment. All these characteristics led us to develop MASCEM – Multi-Agent Simulator of Competitive Electricity Markets, and give electricity market entities a tool to support their decisions and to obtain knowledge about market behaviour and evolution. With MASCEM several experiences have already been made, leading us to achieve some conclusions and define future developments. MASCEM: MULTI-AGENT MODEL There are different types of agents in our model: Market Facilitator Agent, Seller Agents, Buyer Agents, Trader Agents, Market Operator Agent and System Operator Agent. In this section we will briefly describe their roles, functionalities and the interactions between them, for details please consult (Praça et. al 2003). Figure 1 illustrates MASCEM Multi-Agent model. Buyers System Operator Market Op Bilateral Contracts Pool Trader Sellers ~