Agent-based modeling of electric power markets

A novel agent-based model, the Electricity Market Complex Adaptive System (EMCAS) model, is designed to study market restructuring and the impact of new technologies on the power grid. The agent-based approach captures the complex interactions between the physical infrastructure and the economic behaviors of various agents operating in an electricity market. The electric power system model consists of power generating plants, transmission lines, and load centers. The electric power market is composed of generating company agents who bid capacity and prices into power pools administered by an Independent System Operator (ISO). The ISO agent balances supply and demand for day-ahead markets. EMCAS also simulates real-time market operation to account for the uncertainties in day-ahead forecasts and availability of generating units. This paper describes the model, its implementation, and its use to address questions of congestion management, price forecasting, market design, and market power.