Agent-Based Gaming Approach for Electricity Markets

Abstract

The Electricity Market in Japan has been an oligopolistic market since the previous century, but it will be a liberalised competitive market soon due to a policy change. It is supposed to provide wholesale power markets. Therefore it has high possibilities to become two-sided markets with strong wholesalers. The two-sided markets have been researched using mathematical economics models recent years. The model, however, can only deal with one or two players on a market, therefore it has limitations to analyse more various players. On the other hand, many research projects of dynamic pricing and incentive mechanisms have been carried out on power markets. Some of the studies use agent-based modelling to analyse them as autonomous agents and optimised decision-making algorithms. These studies have shown interesting results, but they also have limitations to analyse further more complex markets and decision making processes of market players taking managing conditions into consideration. In this study, we adopt Agent-based gaming to analyse them on a two-sided electricity market.