Matchmaking model for bilateral trading decisions of load serving entity

Kashif Imran, Kafait Ullah, Abraiz Khattak, Jiangfeng Zhang, Anamitra Pal, Muhammad Nauman Rafique, Sherjeel Mahmood Baig

Research output: Contribution to journalArticle

Abstract

Matchmaking and bilateral negotiations are two distinct phases of practical market participants’ decision making for bilateral transactions. Agent-based models are naturally suitable for electricity markets in general and bilateral transactions in particular. This paper's contribution includes development of a novel matchmaking model that generates forward contracting power and utility curves. The matchmaking model enables a load serving entity agent to undertake its own matchmaking, to find optimal trading allocations over a range of prices, before engaging in bilateral negotiations with generation company agents. Open-source agent-based simulation platform allows combined simulation of bilateral transactions and day-ahead auction. In this research paper, matchmaking is achieved by direct-search without any organized bulletin board, broker, or matchmaker. Instead of random matchmaking, portfolio optimization based matchmaking systematically explores available electricity trading options throughout the market: local and non-local bilateral trades as well as day-ahead auctions. The matchmaking algorithm is unique because it scans all trading options over the entire range of negotiable prices. Depending on private profit-seeking goals, risk-aversion preferences and market price statistics, each load serving entity agent individually finds its matchmaking results. A set of case studies demonstrates how matchmaking model depends on transmission rights and performs for different risk aversion factors.

Original languageEnglish (US)
Article number106281
JournalElectric Power Systems Research
Volume183
DOIs
StatePublished - Jun 2020
Externally publishedYes

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Keywords

  • Bilateral negotiations
  • Day-ahead markets
  • Direct-search bilateral trade
  • Matchmaking
  • Portfolio optimization

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering

Cite this

Imran, K., Ullah, K., Khattak, A., Zhang, J., Pal, A., Rafique, M. N., & Baig, S. M. (2020). Matchmaking model for bilateral trading decisions of load serving entity. Electric Power Systems Research, 183, [106281]. https://doi.org/10.1016/j.epsr.2020.106281