Bilateral Transactions Research Articles

Influences of uncertainties to the generation feasible region for medium- and long-term electricity transaction

For the implementation of power market in China, medium- and long-term security checks are essential for bilateral transactions, of which the electricity quantity that constitutes the generation feasible region (GFR) is the target. However, uncertainties from load forecasting errors and transmission contingencies are threats to medium- and long-term electricity trading in terms of their influences on the GFR. In this paper, we present a graphic distortion pattern in a typical three- generator system using the Monte Carlo method and projection theory based on security constrained economic dispatch. The underlying potential risk to GFR from uncertainties is clearly visualized, and their impact characteristics are discussed. A case study on detailed GFR distortion was included to demonstrate the effectiveness of this visualization model. The result implies that a small uncertainty could distort the GFR to a remarkable extent and that different line-contingency precipitates disparate the GFR distortion patterns, thereby eliciting great emphasis on load forecasting and line reliability in electricity transactions.

A secure distributed ledger for transactive energy: The Electron Volt Exchange (EVE) blockchain

The adoption of blockchain for Transactive Energy has gained significant momentum as it allows mutually non-trusting agents to trade energy services in a trustless energy market. Research to date has assumed that the built-in Byzantine Fault Tolerance in recording transactions in a ledger is sufficient to ensure integrity. Such work must be extended to address security gaps including random bilateral transactions that do not guarantee reliable and efficient market operation, and market participants having incentives to cheat when reporting actual production/consumption figures. Work herein introduces the Electron Volt Exchange framework with the following characteristics: (1) a distributed protocol for pricing and scheduling prosumers’ production/consumption while keeping constraints and bids private, and (2) a distributed algorithm to prevent theft that verifies prosumers’ compliance to scheduled transactions using information from grid sensors (such as smart meters) and mitigates the impact of false data injection attacks. Flexibility and robustness of the approach are demonstrated through simulation and implementation using Hyperledger Fabric.

Decentralized Transactive Energy for Flexible Resources in Distribution Systems

The increasing penetration of proactive agents in electric power distribution systems calls for mechanisms to coordinate their trading activities. The commonly employed centralized and distributed methods for supply-demand coordination are not only limited by hardware requirements but also restrictive for active participation of the market agents. This paper proposes a novel decentralized transactive coordination framework that allows participants to bid and clear transactions via a bilateral interaction process. The framework is based on 1) power consumption flexibility individually reported by demand agents using model-predictive control, 2) bilateral supply-side bidding individually determined by the supply agents using a Markowitz Portfolio Optimization model, and 3) individual simultaneous clearing of transactions by demand agents based on second-price sealed-bid auctions. The suppliers bid in the market to achieve desired returns while minimizing their risks. The demand agents harness their demand flexibility by competitively clearing the supplier bids. Unlike traditional approaches, the proposed framework does not require master nodes to orchestrate transactions and, therefore, facilitates massive participation of market agents. Simulation cases demonstrate that the proposed framework successfully performs the market function for bilateral transactions among thousands of proactive agents.

LEGAL NATURE OF AGREEMENTS ON THE PAYMENT OF ALIMONY: PROBLEMS OF SUBSTANTIVE AND PROCEDURAL LAW

Task. The authors of the article set themselves the task of analyzing the specifics of the agreements on the payment of alimony and the procedural features of such cases. Model. To solve such a theoretical problem, it is necessary to investigate the legal nature of child support agreements as a type of bilateral transaction. Findings. The agreements on the payment of alimony differ in their ambiguous legal nature and require proper regulation in the norms of the current legislation of the Russian Federation. The scope of the study. Limited by relations in the field of family, civil law, civil process of the Russian Federation. Practical value. The identification of the nature and specific features of agreements in the field of family relations will not only enrich the theory of family law, but also create a basis for the formation of the practice of considering cases of alimony, and formulate general measures aimed at developing effective mechanisms to protect the property interests of participants in family relations. Social consequences. Determining the specifics of family agreements will allow us to establish the relationship and interdependence of the norms of the family, civil type and norms of the civil process, which will ensure their effective interaction in practice. Originality, value. A systematic study and study of the features of alimony agreements will allow them to be separated from other types of civil law transactions, identify common problems in collecting alimony and proper fulfillment of alimony obligations that impede the proper satisfaction of the basic needs of all family members. An analysis of the norms of the legislation of the Russian Federation allows us to identify additional opportunities and new ways to properly enforce court decisions on alimony.

Wind-Hydro Combined Bidding Approach for Congestion Management Under Secured Bilateral Transactions in Hybrid Power System

After restructuring of power system, independent system operator is facing a big challenge to manage operations on transmission networks due to growing renewables share and involvement of large market players in power system operation. Among all renewables, wind power has the most stochastic nature and faces penalties due to mismatch in its initial power committed and final power delivered. Also, wind power plants are generally located at remote areas and need longer transmission lines for power delivery. This leads to congestion of transmission lines and poses a threat to security and safety of power system. To manage congestion on transmission lines, this paper proposes a novel rescheduling based combined bidding approach for wind integrated hybrid (pool + bilateral) power system. Congestion management problem has been formulated as mixed integer non-linear programming problem incorporating proposed combined bidding approach with an objective to reduce total congestion management cost through rescheduling of wind and hydro units on the basis of their combined up and down generation cost bids. The hydro units that have lowest operating cost and fast turn-on time have been used in coordination with wind units to alleviate congestion cost. Secured bilateral transactions have been confirmed while implementing the combined bidding approach for congestion management. Performance of proposed strategy has been analyzed by demonstrating it on modified IEEE-24 bus RTS system.

Hedging power market risk by investing in self-production from complementing renewable sources

The increasing competitiveness of renewable energy and the complementarity between water inflows and wind can be used as drivers to provide more security of supply for companies that want to invest in these renewable sources. From this perspective, this study focuses on the analysis of a large consumer that procures its energy in an electricity market involving both bilateral and spot market transactions. Moreover, the consumer can invest in a renewable self-production, deciding the new installed capacity and the moment to invest. Also, the hydro-wind complementarity is explored to reduce the spot market risk in which the consumer is exposed to, because of the intermittent renewable generation profile. Therefore, the proposed model is a specialized tool to further explore the complementarity between renewable sources in the optic of a large consumer. The effectiveness of the model is illustrated using historical data from the Brazilian market.

Decentralization and mutual liability rules

This paper builds on the recent work of Groote Schaarsberg et al. (Math Methods Oper Res 87(3):383–409, 2018) on mutual liability problems. In essence, a mutual liability problem comprises a financial network in which agents may have both monetary individual assets and mutual liabilities. Here, mutual liabilities reflect rightful monetary obligations from past bilateral transactions. To settle these liabilities by reallocating the individual assets, mutual liability rules are analyzed that are based on centralized bilateral transfer schemes which use a certain bankruptcy rule as its leading allocation mechanism. In this paper we derive a new characterization of mutual liability rules by taking a decentralized approach instead, which is based on a recursive individual settlement procedure. We show that for bankruptcy rules that satisfy composition, this decentralized procedure always leads to the same allocation as the one prescribed by the corresponding mutual liability rule based on centralized bilateral transfer schemes. Finally, we introduce a new reduction method for mutual liability problems and prove that any bankruptcy-rule-based mutual liability rule is invariant with respect to such a reduction.

Information theory and behavior

The quantal response behavior widely observed in experiments and observations of human and animal behavior can be derived as expected payoff maximization subject to a constraint on the entropy of the subject’s behavior mixed strategy. The Lagrange multiplier corresponding to the entropy constraint is an agent’s “behavior temperatureˮ. Entropy-constrained behavior approximates payoff-maximizing behavior, but in many contexts exhibits qualitatively different outcomes. The “endowment effectˮ and other instances of “loss-aversionˮ, for example, can be seen as a consequence of entropy-constrained behavior. Identical entropy-constrained agents with the same value for a good or asset will exhibit spontaneous “noise tradingˮ. An entropy-constrained agent with a lower behavior temperature will systematically take economic surplus away from an agent with the same valuation of a good but a higher behavior temperature in bilateral transactions. The equilibrium of a standard supply-demand models with entropy-constrained agents is a non-degenerate frequency distribution of transaction prices rather than a single equilibrium price. Changes in behavior temperature can transform social interaction games from prisoners’ dilemmas to assurance games. Entropy-constrained quantal responses allow quantitative inferences about payoff changes and distribution stronger than qualitative Pareto comparisons.

FACTS Devices Loss Consideration in Placement Approach for Available Transfer Capability Enhancement

This paper incorporates Flexible AC Transmission System (FACTS) device loss with the general loss sensitivity equation for the determination of optimum location for its placement in deregulated power networks, with objectives of Available Transfer Capability (ATC) enhancement, bus voltage improvement and loss reduction. A detailed mathematical model in terms of circuit system parameters is presented based on FACTS loss amalgamation approach. Thyristor Controlled Series Capacitor (TCSC) FACTS device is considered for simulation and analysis because of its capability to control active power among other parameters. The TCSC location is established based on analysis of sensitivity factors obtained from partial derivatives of the resultant loss equations (including FACTS) with respect to control parameters. ATC values are obtained using ACPRDF method and with TCSC in place, these values are enhanced for different bilateral and multilateral power transactions. IEEE 5 Bus system is used for the demonstration of the effectiveness of this approach. Placement with this method resulted into ATC enhancement of more than 60% well above the values obtained when TCSC was placed with thermal limit method. In addition, a substantial bus voltage improvement of up to 3% deviation minimization as well as up to 10% active power loss reduction was recorded with this placement.

An efficient holomorphic embedded based approach for available transfer capability evaluation

Available Transfer Capability (ATC) is the additional power that can be securely and reliably transacted over and above the already committed transactions in a power network. In the electricity market, where every player (power producer and consumer) tries to earn higher profit, quick and accurate assessment of ATC of the power network is a prime concern. Holomorphic Embedding (HE) is a novel and non-iterative way of solving the Power Flow (PF) equations, which guarantees to find the operational High Voltage (HV) solution, in case it exists. Analytic continuation extends the domain of convergence of non-analytic functions to have voltage solutions. This paper, thus, proposes an extremely efficient and accurate approach for evaluation of ATC using the Holomorphic Embedded PF (HEPF) considering the intact system condition and N-1 contingency situations. This approach is successfully tested on IEEE 30 bus, IEEE 118 bus, and IEEE 300 bus systems for various bilateral and multilateral transactions. The results, thus, obtained prove the efficacy of the proposed approach in comparison with those obtained from the repeated Newton-Raphson PF (NRPF), Fast Decoupled PF (FDPF) and Continuation PF (CPF) based methods.

Bilateral negotiations for electricity market by adaptive agent-tracking strategy

Bilateral transactions hedge both sides against uncertain price and volume risks of day-ahead auction and make up major portions of trading in electricity markets. Peer-to-peer bilateral transactions avoid broker fees but involve challenges of balancing between cooperative and competitive strategies for multi-round negotiations. To solve these challenges, this paper develops novel utility-based and adaptive agent-tracking strategies for bilateral negotiations. Relying on bilateral transaction volume and utility curves determined over a price range during unilateral pre-negotiation, utility-based strategies are developed for generation company (GenCo) agent (load serving entity (LSE) agent) to offer (bid) volumes and prices during multi-round bilateral negotiations. GenCo agent is also equipped with a new adaptive agent-tracking strategy that estimates reservation price of each LSE agent by Bayesian learning and updates the estimates in each round. The adaptive agent-tracking strategy facilitates cooperative yet competitive responses. Integration of new bilateral negotiation strategies with existing day-ahead auction in a renowned agent-based platform also enables combined simulation of the two market types. The case study demonstrates that the adaptive agent-tracking strategy empowers GenCoagents to swing bilateral negotiation results in their favor and yield 7% more payoff than the utility-based strategy, while achieving 100% improvement in frequency of failure of negotiation.

Nash equilibria in optimal reinsurance bargaining

We introduce a strategic behavior in reinsurance bilateral transactions, where agents choose the risk preferences they will appear to have in the transaction. Within a wide class of risk measures, we identify agents’ strategic choices to a range of risk aversion coefficients. It is shown that at the strictly beneficial Nash equilibria, agents appear homogeneous with respect to their risk preferences. While the game does not cause any loss of total welfare gain, its allocation between agents is heavily affected by the agents’ strategic behavior. This allocation is reflected in the reinsurance premium, while the insurance indemnity remains the same in all strictly beneficial Nash equilibria. Furthermore, the effect of agents’ bargaining power vanishes through the game procedure and the agent who gets more welfare gain is the one who has an advantage in choosing the common risk aversion at the equilibrium.

Price allocation of transmission line usage in open access system using mega volt ampere kilometer and mega volt ampere cost method for integrated Nepal power system

The price allocation of transmission line usage for an open access system considering Integrated Nepal Power System (INPS) has been discussed in this paper using the MVA (mega volt ampere) - KM (kilometer) and MVA cost method. The price allocation has been compared for INPS (Integrated Nepal Power System) and IEEE 14 bus system. The transmission line costs in IEEE 14 bus system is based on average construction and operation cost whereas, the costs in the INPS is an actual cost of the present transmission system. The price has been first calculated for different bus with reference to slack bus and for different bilateral and multilateral transactions, using MW KM - MW cost and MVA KM - MVA cost methods. The active and apparent powers for the base case and transaction cases have been calculated using Newton Raphson Method. The prices from MVA KM - MVA cost method are higher than MW KM - MW cost method for both bilateral transaction and multi-lateral transaction indicating more reactive power support in addition to the real power loading due to transactions in the system. The result shows that MVA KM - MVA cost method requires incentives for reactive power support to the system such as INPS.

Matchmaking model for bilateral trading decisions of load serving entity

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.

Integrating P2P Energy Trading With Probabilistic Distribution Locational Marginal Pricing

This paper proposes a new local energy market design for distribution systems, which integrates peer-to-peer (P2P) energy trading and probabilistic locational marginal pricing. Distribution locational marginal pricing and P2P energy trading have each been proposed as potential alternatives to traditional retail pricing, to improve coordination between prosumers with distributed energy resources. Unidirectional locational pricing provides a scalable approach for coordinating demand, considering constraints and losses; while P2P energy trading allows prosumers to negotiate mutually beneficial bilateral energy transactions that increase the utilisation of their flexible energy resources. This paper proposes a market design combining the benefits of these two strategies. First, a new strategy for day-ahead locational marginal pricing is developed, which manages the uncertainty associated with local generation, demand and upstream prices by introducing a spread between the prices charged for energy imports and paid for energy exports. Then, local P2P energy trading platforms are integrated to additionally enable direct prosumer-to-prosumer trading, with transaction fees penalising energy transfers according to probabilistic differential locational marginal prices. Case studies are presented for a multi-phase low voltage distribution network, showing how the design can create value for prosumers, and the system as a whole, by reducing the curtailment of renewable generation.

Self-adaptive fuzzy-PID controller for AGC study in deregulated Power System

The aim of this paper elucidates the AGC issues in a large scale interconnected power system incorporating HVDC link under the deregulated environment. The performance of the system is degraded under the influence of abrupt load change, and parameter variation. To perceive a reliable and quality power supply, secondary robust controllers are essential. A novel self-adaptive Fuzzy-PID controller is proposed to ameliorate the dynamic performance of both the conventional PID and Fuzzy-PID controller, employed in the restructured power system. In self-adaptive Fuzzy-PID controller unlike the Fuzzy-PID controller, the output scaling factors are tuned dynamically while the controller is functioning. These three controllers are designed by enumerating different gains and scaling factors, applying a budding nature-inspired algorithm known as Wild Goat Algorithm (WGA). The superior dynamic performance of frequency and tie-line power deviation under self-adaptive Fuzzy-PID controller in comparison to its' counterparts is investigated by dispatching the scheduled and unscheduled power under different contracts such as poolco based transaction, bilateral transaction and contract violation based transaction through different tie-lines. The dynamic response under parameter variation and random load perturbation confers the robustness of the proposed controller.

Self-adaptive fuzzy-PID controller for AGC study in deregulated Power System

The aim of this paper elucidates the AGC issues in a large scale interconnected power system incorporating HVDC link under the deregulated environment. The performance of the system is degraded under the influence of abrupt load change, and parameter variation. To perceive a reliable and quality power supply, secondary robust controllers are essential. A novel self-adaptive Fuzzy-PID controller is proposed to ameliorate the dynamic performance of both the conventional PID and Fuzzy-PID controller, employed in the restructured power system. In self-adaptive Fuzzy-PID controller unlike the Fuzzy-PID controller, the output scaling factors are tuned dynamically while the controller is functioning. These three controllers are designed by enumerating different gains and scaling factors, applying a budding nature-inspired algorithm known as Wild Goat Algorithm (WGA). The superior dynamic performance of frequency and tie-line power deviation under self-adaptive Fuzzy-PID controller in comparison to its' counterparts is investigated by dispatching the scheduled and unscheduled power under different contracts such as poolco based transaction, bilateral transaction and contract violation based transaction through different tie-lines. The dynamic response under parameter variation and random load perturbation confers the robustness of the proposed controller.

Transactions that mediate the contribution to a business association

The article analyzes the transactions that mediate the contribution to the business association. Attention is paid to determining the legal nature of the transactions made by the founders/participants when they are making the contributions to the statutory (folding) capital. The author also conducted a comparative legal analysis of the Ukraine’s legislation with the legislation of foreign countries (France, Czech Republic, Latvia, Poland, etc.). It is concluded that in the initial creation of a business company the sole founder of the contribution is a unilateral substantive transaction, which is performed in order to execute the decision on the establishment of the company. However, if the partnership is founded by two or more founders, the actions of the founders in making contributions are a unilateral action that accompanies or commits a binding contract of the founders. Similarly, making additional deposits when a third party enters the Private Limited Сompany/Additional Liability Company should be considered as a bilateral real estate transaction, which is performed for the implementation of the contract on additional contribution, and the contribution by the members of the company – a bilateral real estate transaction, which is performed for the execution of the decision of the general meeting to attract additional fees. deposits or an additional contribution agreement. In this case, the deposit transaction as a real transaction (transfer of deposit) cannot be automatically invalidated if the binding agreement of the founders is invalidated

Bilateral Electricity Market in a Distribution System Environment

Increasing penetration of proactive agents, including distributed energy resources (DERs) and responsive loads (RLs), in distribution systems motivates methods to incentivize market participation from demand-side resources. The complexity resulting from large-scale integration of proactive agents has challenged the viability of centrally managing grid resources in a distribution system environment and motivated decentralized frameworks to coordinate the transactions. Existing decentralized frameworks are primarily focused on designing transaction mechanisms. They neither include a formal market construct nor a computationally feasible approach for market settlement for a large volume of transactions while ensuring the security of grid operation. This paper presents a distributed computational approach for a distribution system market where the coordination framework is based on agreement on bilateral energy transactions reached by market participants. Using the proposed distributed computational method, participants play a role in determining the set of bilateral transactions that maximizes the social welfare. The distribution system operator (DSO) ensures a secure operating condition of the distribution grid by validating each transaction that is agreed upon. Under a potential violation of security constraints by a proposed bilateral transaction, the DSO runs an optimal power flow (OPF) and recommends a new set of transactions (closest to those previously proposed) while maintaining power system security. The proposed framework is validated using IEEE 123-node test system. The results confirm the feasibility of the proposed approach for distribution systems.

Operating Elements of UK Electricity Contract Market and Its Enlightenment to China

The United Kingdom is the birthplace of the world industrial revolution. Its marketization of the power industry has been going on for more than 20 years. It is a developed country with a relatively mature power market system. The UK electricity market reform has experienced the Power P00L model, the New Electricity Trading Arrangements model, and the British Electricity Trading and Transmission Arrangements model. Since the NETA model, the UK has formed a power production-transaction-regulatory system centered on bilateral transactions. China is undergoing market-oriented reform of the power system. In order to break the monopoly, the main contents include changes in the development concept of the traditional power industry, the establishment of a new mechanism for direct trading between power generation enterprises and users, the establishment of an independent and reasonable transmission and distribution mechanism, and the opening of private capital into the electricity market, and so on. This paper introduces the reform process of the UK electricity contract market, summarizes the substantive elements and mechanism elements, lists the operation elements of the current UK electricity contract market, and analyses the structure of the UK electricity market and the bilateral electricity trading mechanism deeply. On this basis, some suggestions are put forward to further improve the construction of China’s electricity market.