Mascem: A Multiagent System That Simulates Competitive Electricity Markets

  • Authors:
  • Isabel Praca;Carlos Ramos;Zita Vale;Manuel Cordeiro

  • Affiliations:
  • Polytechnic Institute of Porto;Polytechnic Institute of Porto;Polytechnic Institute of Porto;University of Trás-os-Montes e Alto Douro

  • Venue:
  • IEEE Intelligent Systems
  • Year:
  • 2003

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Abstract

As electric utility systems around the world continue to move towards open, competitivemarkets, new players, new rules, and new behavior will keep emerging. Competition not only increases thenumber of players in the electricity business but also affects their behavior. In this context, the needfor new modelling techniques becomes more obvious. MASCEM, an agent-based simulator, can be a valuableframework for studying new electricity market entities, rules, and behavior and analyzing their possibleevolution. MASCEM permits combinations of bilateral trading and pool markets. It also takes buyers'strategic behavior into account, which is uncommon in similar applications. It includes emergingentities such as traders. The simulator offers strategies and a scenario analysis algorithm for definingbids and includes models for the new players in the market, such as traders, providing greater insight into the market's evolution.