An Agent-Based Two-Stage Trading Model for Direct Electricity Procurement of Large Consumers

Jian Zhang, Yanan Zheng, Mingtao Yao, Huiji Wang and Zhaoguang Hu
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Jian Zhang: Department of Electrical Engineering, Tsinghua University, Beijing 100084, China
Yanan Zheng: Energy Research Institute, Chinese Academy of Macroeconomic Research, Beijing 100038, China
Mingtao Yao: Energy Research Institute, Chinese Academy of Macroeconomic Research, Beijing 100038, China
Huiji Wang: School of Electrical and Electronic Engineering, North China Electric Power University, Beijing 102206, China
Zhaoguang Hu: School of Electrical and Electronic Engineering, North China Electric Power University, Beijing 102206, China

Sustainability, 2019, vol. 11, issue 18, 1-16

Abstract: Many electricity markets around the world are still at developmental and transitional stages. To complete the transition and achieve the key objectives of perfect market design, designers often choose direct electricity procurement of large consumers (LCs) as a pilot. The trading mechanism is critical because it lays the foundation for the exploration of formulating a trading model and the succeeding solution; however, the existing trading mechanisms of direct electricity procurement struggle to cope with new challenges that electric power systems are facing. This paper proposes a novel two-stage trading mechanism, considering both the fairness and efficiency of direct electricity procurement. Based on the proposed trading mechanism, an agent-based trading model with multiple participants is developed. The simulation results of the transactions between LCs and generation companies (GenCos) illustrate the feasibility and effectiveness of the proposed mechanism. With this mechanism, LCs and GenCos will have more choices in the trading process and can benefit from the reduction of the average market price. The two-stage trading model provides a new choice for market designers and participants of direct electricity procurement.

Keywords: direct electricity procurement; large consumers; multi-agent; trading mechanism; two-stage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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