A decentralized approach for optimal wholesale cross-border trade planning using multi-agent technology

Over the past decade, power industry has been undergoing deregulation to introduce competition among market participants. Once centralized decision making must now adapt to the new market structure. The optimal cross-border electricity trade planning is an important issue in interconnected power systems under transmission open access. In this paper a decentralized approach is suggested to solve the problem using multi-agent technology. In the new approach rational market participants make decisions based on their own benefits, in the meantime the minimum production and transmission cost of the whole system can be reached without a central coordination except necessary information exchange through media like the Internet. A relevant lemma has been proven. The approach is implemented via a multi-agent system using Java programming language. Computer tests on a 5-area test system show that the suggested new approach is effective and promising.