Game theoretical multi-agent modelling of coalition formation for multilateral trades

In recent years, electric utility industries worldwide have been undergoing deregulation to introduce competitiveness in the generation, transmission and distribution of electric power. The once centralised system planning and operation management must be remodelled to adapt to the new market structure. In particular, the trading mechanism needs to be totally revised as any party may now get involved in this free-market, subject to the unavoidable constraints such as generation volumes, physical transmission means and days-ahead scheduling. This paper presents a multi-agent model in conjunction with game theory to resolve the coalition formation for multilateral trades. The authors have implemented the model using the Java language and the JATLite/JAT0.3 agent development tools developed by Stanford University