Applying agent-based modeling to electricity market simulation

Abstract

The traditional electric companies that operated as a regulated monopoly that controlled all aspects of electricity service are changed. They are separated in those for generation, transmission and distribution. Demanding companies, ISO (Independent system operator), regulator are new entities which enable function of restructured electricity market. That form of market where multiple companies are competing to provide the different services is called deregulated electricity market. In terms of understanding electricity market function, relations among market participants and problems that can occur in deregulated markets, it is necessary to model and simulate electricity market. One of the modeling and simulation methods is agent-based method. EMCAS (Electricity Market Complex Adaptive System) is computer program that enables agent-based modeling and simulation. This paper point up possibility of appliance agent-based modeling and simulation to future Croatian electricity market. The created computer model is being used to simulate two scenarios: base case and price-probing strategy of Generation company. Influence of price probing strategies on electricity price and generators profit is shown.