Population dynamics for renewables in electricity markets: A minority game view

The dominance of fluctuating and intermittent stochastic renewable energy sources (RES) has introduced uncertainty in power systems which in turn, has challenged how electricity market operate. In this context, there has been significant research in developing strategies for RES producers, which however typically focuses on the decision process of a single producer, assuming unrealistic access to aspects of information about the power system. This paper analyzes the behavior of an entire population of stochastic producers in an electricity market using as basis a minority game: the El Farol Bar problem. We illustrate how uncomplicated strategies based on a adaptive learning rules lead to the coordination among RES producers and a Pareto efficient outcome.