Diffusion of shared goods in consumer coalitions. An agent-based model

This paper focuses on the process of coalition formation conditioning the common decision to adopt a shared good, which cannot be afforded by an average single consumer and whose use cannot be exhausted by any single consumer. An agent based model is developed to study the interplay between these two processes: coalition formation and diffusion of shared goods. Coalition formation is modelled in an evolutionary game theoretic setting, while adoption uses elements from both the Bass and the threshold models. Coalitions formation sets the conditions for adoption, while diffusion influences the consequent formation of coalitions. Results show that both coalitions and diffusion are subject to network effects and have an impact on the information flow though the population of consumers. Large coalitions are preferred over small ones since individual cost is lower, although it increases if higher quantities are purchased collectively. The paper concludes by connecting the model conceptualisation to the on-going discussion of diffusion of sustainable goods, discussing related policy implications

Local and Global Interactions in an Evolutionary Resource Game

Conditions for the emergence of cooperation in a spatial common-pool resource game are studied. This combines in a unique way local and global interactions. A fixed number of harvesters are located on a spatial grid. Harvesters choose among three strategies: defection, cooperation, and enforcement. Individual payoffs are affected by both global factors, namely, aggregate harvest and resource stock level, and local factors, such as the imposition of sanctions on neighbors by enforcers. The evolution of strategies in the population is driven by social learning through imitation. Numerous types of equilibria exist in these settings. An important new finding is that clusters of cooperators and enforcers can survive among large groups of defectors. We discuss how the results contrast with the non-spatial, but otherwise similar, game of Sethi and Somanathan (1996).Common property, Cooperation, Evolutionary game theory, Global interactions, Local interactions, Social norms

Energy management of micro-grid using cooperative game theory

Micro-grid (MG) has been introduced as a low voltage and a very small power system connected to a distribution grid through the point of common coupling. It consists of distributed energy resources (DERs) such as solar Photovoltaic (PV), wind turbine, fuel cell, etc.), interconnected load and energy storage sources. It can operate in grid-connected (i.e. when connected to the main grid) or islanded (i.e. when not connected to the main grid) mode. It has an advantage of utilizing low carbon sources and the possibility of its use in the remote local environment, which means that the transmission infrastructures and their associated costs may be deferred. Although there has been a proliferation of optimization methods of energy management in the MG, most of these methods consider self-interest of the players in profit distribution. Moreover, only a few of them consider a fair profit distribution using Nash bargaining solution (NBS) (i.e. when utility function is linear) leading to even profit distribution and high degree of dissatisfaction. For the MG to achieve better economic outcomes, a novel method based on weighted fair energy management among the participants (i.e. building of different types, such as residential buildings, schools, and shops) is proposed. The novelty of the proposed method lies in the new profit sharing method to favour certain participant by assigning a weight to each participant with cooperative game theory (CGT) approach using generalized Nash bargaining solution (GNBS). The proposed approach achieves a fair (reasonable or just) profit allocation with negotiating power indicator. In this work, a case study of six different participant sites is proposed using the CGT method of energy management. The proposed method is able to cope with the drawbacks of the existing independent method, which negotiate directly with other participants for selfish profit distribution. It is demonstrated that the independent method results in (1) a reduction in the profit of each participant of MG when compared with CGT approach and (2) the variation of transfer prices in some participants having profit below the specified lower bound profit since the method does not take into consideration the lower profit bounds. The use of CGT method (i.e. when participants form a coalition) to finding multi-partner profit level subject to specified lower bounds is demonstrated. This results in (1) increase in the profit of the MG participants (2) maintaining the profit level of all the participants above status-quo profit (lower specified profit bounds) with variation in transfer prices and (3) allowing certain participant to be favoured by assigning higher negotiating power to such participant. To achieve the optimal solution in the proposed method, a teaching-learning-based optimization (TLBO) algorithm is presented to efficiently solve the problem. For TLBO algorithm, no specific control parameters are needed except the number of generations and population size. This is in contrast with other heuristic algorithms such as genetic algorithm (GA) and particle swarm optimization (PSO) that require other control parameters (i.e. GA requires selection and crossover operation, while PSO makes use of social parameters and cognitive weight). To demonstrate the effectiveness of the proposed TLBO method, the profit allocations are tested in the grid-connected and the islanded mode using both the CGT and the independent method. In this work, the proposed TLBO method is compared with one traditional method, i.e. Lambda iteration method and two heuristic methods, i.e. PSO and GA. Thus, by using TLBO a considerable amount of computation time is saved. Using the same parameter setting for all the heuristic algorithms used, 20 trials are performed to be able to compare the quality of solution and convergence characteristics. The investigation reveals that TLBO gives the highest quality solutions and better convergence characteristics compared to PSO and GA

Location Awareness in Multi-Agent Control of Distributed Energy Resources

The integration of Distributed Energy Resource (DER) technologies such as heat pumps, electric vehicles and small-scale generation into the electricity grid at the household level is limited by technical constraints. This work argues that location is an important aspect for the control and integration of DER and that network topology can inferred without the use of a centralised network model. It addresses DER integration challenges by presenting a novel approach that uses a decentralised multi-agent system where equipment controllers learn and use their location within the low-voltage section of the power system. Models of electrical networks exhibiting technical constraints were developed. Through theoretical analysis and real network data collection, various sources of location data were identified and new geographical and electrical techniques were developed for deriving network topology using Global Positioning System (GPS) and 24-hour voltage logs. The multi-agent system paradigm and societal structures were examined as an approach to a multi-stakeholder domain and congregations were used as an aid to decentralisation in a non-hierarchical, non-market-based approach. Through formal description of the agent attitude INTEND2, the novel technique of Intention Transfer was applied to an agent congregation to provide an opt-in, collaborative system. Test facilities for multi-agent systems were developed and culminated in a new embedded controller test platform that integrated a real-time dynamic electrical network simulator to provide a full-feedback system integrated with control hardware. Finally, a multi-agent control system was developed and implemented that used location data in providing demand-side response to a voltage excursion, with the goals of improving power quality, reducing generator disconnections, and deferring network reinforcement. The resulting communicating and self-organising energy agent community, as demonstrated on a unique hardware-in-the-loop platform, provides an application model and test facility to inspire agent-based, location-aware smart grid applications across the power systems domain

Coalition Formation of Microgrids with Distributed Energy Resources and Energy Storage in Energy Market

Power grids include entities such as home-microgrids (H-MGs), consumers, and retailers, each of which has a unique and sometimes contradictory objective compared with others while exchanging electricity and heat with other H-MGs. Therefore, there is the need for a smart structure to handle the new situation. This paper proposes a bilevel hierarchical structure for designing and planning distributed energy resources (DERs) and energy storage in H-MGs by considering the demand response (DR). In general, the upper-level structure is based on H-MG generation competition to maximize their individual and/or group income in the process of forming a coalition with other H-MGs. The upper-level problem is decomposed into a set of low-level market clearing problems. Both electricity and heat markets are simultaneously modeled in this paper. DERs, including wind turbines (WTs), combined heat and power (CHP) systems, electric boilers (EBs), electric heat pumps (EHPs), and electric energy storage systems, participate in the electricity markets. In addition, CHP systems, gas boilers (GBs), EBs, EHPs, solar thermal panels, and thermal energy storage systems participate in the heat market. Results show that the formation of a coalition among H-MGs present in one grid will not only have a significant effect on programming and regulating the value of the power generated by the generation resources, but also impact the demand consumption and behavior of consumers participating in the DR program with a cheaper market clearing price

Complexity and the Economics of Climate Change: a Survey and a Look Forward

URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/cesdp2016.htmlDocuments de travail du Centre d'Economie de la Sorbonne 2016.58 - ISSN : 1955-611XWe provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climate-friendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to the one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks

On Logistics Management for Prosumer Business Information System Development and Implementation

Managing prosumer businesses is challenging with different types of renewable and non-renewable energy resources. The development and implementation of energy systems pose additional challenges when prosumers pursue sustainable production while simultaneously trying to mitigate gas emissions and energy losses. Issues associated with energy emissions and supply shortfalls must be addressed before developing prosumer business information systems and reaping their benefits. Innovative IS (Information System) solutions are needed to align different energy systems and prosumer coalitions that require cautious implementations. The purpose of the research is to develop IS artefacts, strategizing energy systems, establishing essential logistics requirements for smart-grids to ensure sustainable energy supplies. A conceptual Prosumer Business-based Design Science Information System (PBDSIS) framework is developed, collaborating IS articulations of prosumer business data artefacts in ecologies, where energy production and distribution need crucial logistics support and implementation of IS artefacts. The framework is implemented in prosumer business domain using open-source data

Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models

Peer-to-peer, community or collective self-consumption, and transactive energy markets offer new models for trading energy locally. Over the past five years, there has been significant growth in the amount of academic literature examining how these local energy markets might function. This systematic literature review of 139 peer-reviewed journal articles examines the market designs used in these energy trading models. A modified version of the Business Ecosystem Architecture Modelling framework is used to extract market model information from the literature, and to identify differences and similarities between the models. This paper examines how peer-to-peer, community self-consumption and transactive energy markets are described in current literature. It explores the similarities and differences between these markets in terms of participation, governance structure, topology, and design. This paper systematises peer-to-peer, community self-consumption and transactive energy market designs, identifying six archetypes. Finally, it identifies five evidence gaps which require future research before these markets could be widely adopted. These evidence gaps are the lack of: consideration of physical constraints; a holistic approach to market design and operation; consideration about how these market designs will scale; consideration of information security; and, consideration of market participant privacy

Canonical Coalitional Games vs. Coalition Formation Games for Power Exchange Management of Networked Microgrids

The concept of networked microgrids, which refers to a cluster of microgrids connected with each other, has emerged in the literature as a consequence of the increasing development of renewable energy. Energy management systems have been developed for planning, monitoring and controlling the power exchange into networked microgrids. Their main components are optimization algorithms for power exchange management. Several optimization algorithms based on coalition formation games were proposed to minimize distribution and transformation power loss of networked microgrids. Unlike these approaches, this paper proposes a non-lineal model based on canonical coalitional game for power exchange management of networked microgrids. To show the performance of the proposed model, results of the model and results of an algorithm based on coalition formation games recently reported in the literature are com-pared with. The main conclusion of this work is, when the objective is to minimize total power losses, the problem of power exchange management of networked microgrids should be modelled as a canonical coalition games and not as coalition formation games.Sociedad Argentina de Informática e Investigación Operativ