Title :
Using Q-learning to model bidding behaviour in electricity market simulation
Author :
Liao, Zhigang ; Sugianto, Ly-Fie
Author_Institution :
Fac. of Bus. & Econ., Monash Univ., Clayton, VIC, Australia
Abstract :
While the choice between two pricing rules, namely Uniform pricing rule and Pay-as-bid pricing rule, has led to a continuous debate in the electricity market establishment process, little attention has been paid to the Vickrey pricing rule. This paper presents an agent-based model to examine the employment of Uniform and Vickrey pricing rules in a deregulated electricity market. Using Q-learning in repetitive trading process, generator agents learn the market characteristics and seek to maximise their revenue by exploring bidding strategies. A look up table is utilised to memorise agents´ bidding experience that help the agents improve their strategies. Supply quantity withholding and generators´ collusion phenomenon have been observed in this study under certain market arrangements. The implication of these two pricing rules on the total dispatch costs and generators´ profit are discussed in this paper.
Keywords :
digital simulation; learning (artificial intelligence); power engineering computing; power markets; pricing; table lookup; Pay-as-bid pricing rule; Q-learning; Vickrey pricing rule; agent based model; bidding behaviour model; electricity market establishment process; electricity market simulation; look up table; market characteristics; repetitive trading process; supply quantity; Computational modeling; Economics; Electricity supply industry; Generators; ISO; Pricing; Q-Learning; agent-based model; auction market; bidding behaviour; pricing rules; simulation;
Conference_Titel :
Computational Intelligence in Multicriteria Decision-Making (MDCM), 2011 IEEE Symposium on
Conference_Location :
Paris
Print_ISBN :
978-1-61284-068-0
DOI :
10.1109/SMDCM.2011.5949267