Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

Peer-to-peer (P2P) energy trading has emerged as a next-generation energy management mechanism for the smart grid that enables each prosumer of the network to participate in energy trading with one another and the grid. This poses a significant challenge in terms of modeling the decision-making process of each participant with conflicting interest and motivating prosumers to participate in energy trading and to cooperate, if necessary, for achieving different energy management goals. Therefore, such decision-making process needs to be built on solid mathematical and signal processing tools that can ensure an efficient operation of the smart grid. This paper provides an overview of the use of game theoretic approaches for P2P energy trading as a feasible and effective means of energy management. As such, we discuss various games and auction theoretic approaches by following a systematic classification to provide information on the importance of game theory for smart energy research. Then, the paper focuses on the P2P energy trading describing its key features and giving an introduction to an existing P2P testbed. Further, the paper zooms into the detail of some specific game and auction theoretic models that have recently been used in P2P energy trading and discusses some important finding of these schemes.Comment: 38 pages, single column, double spac

Systematizing Decentralization and Privacy: Lessons from 15 Years of Research and Deployments

Decentralized systems are a subset of distributed systems where multiple authorities control different components and no authority is fully trusted by all. This implies that any component in a decentralized system is potentially adversarial. We revise fifteen years of research on decentralization and privacy, and provide an overview of key systems, as well as key insights for designers of future systems. We show that decentralized designs can enhance privacy, integrity, and availability but also require careful trade-offs in terms of system complexity, properties provided, and degree of decentralization. These trade-offs need to be understood and navigated by designers. We argue that a combination of insights from cryptography, distributed systems, and mechanism design, aligned with the development of adequate incentives, are necessary to build scalable and successful privacy-preserving decentralized systems

A Gang of Adversarial Bandits

We consider running multiple instances of multi-armed bandit (MAB) problems in parallel. A main motivation for this study are online recommendation systems, in which each of N users is associated with a MAB problem and the goal is to exploit users' similarity in order to learn users' preferences to K items more efficiently. We consider the adversarial MAB setting, whereby an adversary is free to choose which user and which loss to present to the learner during the learning process. Users are in a social network and the learner is aided by a-priori knowledge of the strengths of the social links between all pairs of users. It is assumed that if the social link between two users is strong then they tend to share the same action. The regret is measured relative to an arbitrary function which maps users to actions. The smoothness of the function is captured by a resistance-based dispersion measure Ψ. We present two learning algorithms, GABA-I and GABA-II which exploit the network structure to bias towards functions of low Ψ values. We show that GABA-I has an expected regret bound of O(pln(N K/Ψ)ΨKT) and per-trial time complexity of O(K ln(N)), whilst GABA-II has a weaker O(pln(N/Ψ) ln(N K/Ψ)ΨKT) regret, but a better O(ln(K) ln(N)) per-trial time complexity. We highlight improvements of both algorithms over running independent standard MABs across users

An artificial intelligence-based collaboration approach in industrial IoT manufacturing : key concepts, architectural extensions and potential applications

The digitization of manufacturing industry has led to leaner and more efficient production, under the Industry 4.0 concept. Nowadays, datasets collected from shop floor assets and information technology (IT) systems are used in data-driven analytics efforts to support more informed business intelligence decisions. However, these results are currently only used in isolated and dispersed parts of the production process. At the same time, full integration of artificial intelligence (AI) in all parts of manufacturing systems is currently lacking. In this context, the goal of this manuscript is to present a more holistic integration of AI by promoting collaboration. To this end, collaboration is understood as a multi-dimensional conceptual term that covers all important enablers for AI adoption in manufacturing contexts and is promoted in terms of business intelligence optimization, human-in-the-loop and secure federation across manufacturing sites. To address these challenges, the proposed architectural approach builds on three technical pillars: (1) components that extend the functionality of the existing layers in the Reference Architectural Model for Industry 4.0; (2) definition of new layers for collaboration by means of human-in-the-loop and federation; (3) security concerns with AI-powered mechanisms. In addition, system implementation aspects are discussed and potential applications in industrial environments, as well as business impacts, are presented

Value Creation through Co-Opetition in Service Networks

Well-defined interfaces and standardization allow for the composition of single Web services into value-added complex services. Such complex Web Services are increasingly traded via agile marketplaces, facilitating flexible recombination of service modules to meet heterogeneous customer demands. In order to coordinate participants, this work introduces a mechanism design approach - the co-opetition mechanism - that is tailored to requirements imposed by a networked and co-opetitive environment

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

Deep Learning-Based Machinery Fault Diagnostics

This book offers a compilation for experts, scholars, and researchers to present the most recent advancements, from theoretical methods to the applications of sophisticated fault diagnosis techniques. The deep learning methods for analyzing and testing complex mechanical systems are of particular interest. Special attention is given to the representation and analysis of system information, operating condition monitoring, the establishment of technical standards, and scientific support of machinery fault diagnosis