Agent-based modelling of the UK short term electricity market: Effects of intermittent wind power

This work focuses on modelling the electricity trading and market mechanism currently in place in the UK, using an agent-based approach and a learning strategy for the agents to update their bidding rules. The ongoing consultations by the Department of Energy and Climate Change on the possible models for a capacity mechanism reflect the unavoidable shift towards low-carbon and more intermittent sources of generation. One of the issues of concern is the way the system operator adapts the balancing mechanism to run in a more efficient and economical way. Here we present an agent-based model comprising two interconnected parts: a representation of the power exchange and a model of the balancing mechanism along with the settlement system. In order to assess the influence of different types of generation on the system balancing prices, we model the generating units based on the size and type of fuel involved. The agent-based model incorporates the operating decisions and control mechanisms of the system operator, and the functions of various trading entities such as generators and suppliers participating within this market. Based on this model, we report investigations into the effect of high penetrations of distributed intermittent generation in influencing the energy balancing prices.