An agent-based decision support system for wholesale electricity market

  • Authors:
  • Toshiyuki Sueyoshi;Gopalakrishna R. Tadiparthi

  • Affiliations:
  • Department of Management, New Mexico Institute of Mining and Technology, Socorro, NM 87801, USA and Department of Industrial and Information Management, National Cheng Kung University, Tainan, Tai ...;Department of Computer Science, New Mexico Institute of Mining and Technology, Socorro, NM 87801, USA

  • Venue:
  • Decision Support Systems
  • Year:
  • 2008

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Abstract

Application software has been developed for analyzing and understanding a dynamic price change in the US wholesale power market. Traders can use the software as an effective decision-making tool by modeling and simulating a power market. The software uses different features of a decision support system by creating a framework for assessing new trading strategies in a competitive electricity trading environment. The practicality of the software is confirmed by comparing its estimation accuracy with those of other methods (e.g., neural network and genetic algorithm). The software has been applied to a data set regarding the California electricity crisis in order to examine whether the learning (convergence) speed of traders is different between the two periods (before and during the crisis). Such an application confirms the validity of the proposed software.