Finding Fair Negotiation Algorithms to Reduce Peak Electricity Consumption in Micro Grids

Abstract

Reducing peak electricity consumption is important to maximise use of renewable energy sources, and reduce the total amount of capacity required on a grid. Most approaches use a centralised optimisation algorithm run by a utility company. Here we develop a decentralised approach, where agents represent the interests of a household, and negotiate over when to run various appliances. We have developed an experimental framework that allows users’ perceived fairness of different negotiation algorithms to be evaluated.