Contract Design for Energy Demand Response

Power companies such as Southern California Edison (SCE) uses Demand Response (DR) contracts to incentivize consumers to reduce their power consumption during periods when demand forecast exceeds supply. Current mechanisms in use offer contracts to consumers independent of one another, do not take into consideration consumers' heterogeneity in consumption profile or reliability, and fail to achieve high participation. We introduce DR-VCG, a new DR mechanism that offers a flexible set of contracts (which may include the standard SCE contracts) and uses VCG pricing. We prove that DR-VCG elicits truthful bids, incentivizes honest preparation efforts, enables efficient computation of allocation and prices. With simple fixed-penalty contracts, the optimization goal of the mechanism is an upper bound on probability that the reduction target is missed. Extensive simulations show that compared to the current mechanism deployed in by SCE, the DR-VCG mechanism achieves higher participation, increased reliability, and significantly reduced total expenses.Comment: full version of paper accepted to IJCAI'1

Game-theoretic modeling of transmission line reinforcements with distributed generation

Favourable sites for renewable generation are often remote locations (such as islands) where installed capacity, e.g. from wind turbines, exceeds local aggregate demand. We study the effect that curtailment mechanisms - applied when there is excess generation - have on the incentives to build additional capacity and the profitability of the generators. Next, for a two-location setting, we study the combined effect that curtailment schemes and line access rules have on the decision to invest in transmission expansion. In particular, for "common access" rules, this leads to a Stackelberg game between transmission and local generation capacity investors, and we characterise the equilibrium of this game. Finally, we apply and exemplify our model to a concrete problem of a grid reinforcement project, between Hunterston and the Kintyre peninsula, in western Scotland, and we determine a mechanism for setting transmission charges that assures both the profitability of the line and local renewable investors

Cooperatives for demand side management

We propose a new scheme for efficient demand side management for the Smart Grid. Specifically, we envisage and promote the formation of cooperatives of medium-large consumers and equip them (via our proposed mechanisms) with the capability of regularly participating in the existing electricity markets by providing electricity demand reduction services to the Grid. Based on mechanism design principles, we develop a model for such cooperatives by designing methods for estimating suitable reduction amounts, placing bids in the market and redistributing the obtained revenue amongst the member agents. Our mechanism is such that the member agents have no incentive to show artificial reductions with the aim of increasing their revenue

Negotiating Concurrently with Unknown Opponents in Complex, Real-Time Domains

We propose a novel strategy to enable autonomous agents to negotiate concurrently with multiple, unknown opponents in real-time, over complex multi-issue domains. We formalise our strategy as an optimisation problem, in which decisions are based on probabilistic information about the opponents' strategies acquired during negotiation. In doing so, we develop the first principled approach that enables the coordination of multiple, concurrent negotiation threads for practical negotiation settings. Furthermore, we validate our strategy using the agents and domains developed for the International Automated Negotiating Agents Competition (ANAC), and we benchmark our strategy against the state-of-the-art. We find that our approach significantly outperforms existing approaches, and this difference improves even further as the number of available negotiation opponents and the complexity of the negotiation domain increases

Using Gaussian Processes to Optimise Concession in Complex Negotiations against Unknown Opponents

In multi-issue automated negotiation against unknown opponents, a key part of effective negotiation is the choice of concession strategy. In this paper, we develop a principled concession strategy, based on Gaussian processes predicting the opponent's future behaviour. We then use this to set the agent's concession rate dynamically during a single negotiation session. We analyse the performance of our strategy and show that it outperforms the state-of-the-art negotiating agents from the 2010 Automated Negotiating Agents Competition, in both a tournament setting and in self-play, across a variety of negotiation domains

A multi-agent platform for auction-based allocation of loads in transportation logistics

This paper describes an agent-based platform for the allocation of loads in distributed transportation logistics, developed as a collaboration between CWI, Dutch National Center for Mathematics and Computer Science, Amsterdam and Vos Logistics Organizing, Nijmegen, The Netherlands. The platform follows a real business scenario proposed by Vos, and it involves a set of agents bidding for transportation loads to be distributed from a central depot in the Netherlands to different locations across Germany. The platform supports both human agents (i.e. transportation planners), who can bid through specialized planning and bidding interfaces, as well as automated, software agents. We exemplify how the proposed platform can be used to test both the bidding behaviour of human logistics planners, as well as the performance of automated auction bidding strategies, developed for such settings. The paper first introduces the business problem setting and then describes the architecture and main characteristics of our auction platform. We conclude with a preliminary discussion of our experience from a human bidding experiment, involving Vos planners competing for orders both against each other and against some (simple) automated strategies

Using Options with Set Exercise Prices to Reduce Bidder Exposure in Sequential Auctions

The exposure problem appears whenever an agent with complementary valuations bids to acquire a bundle of items sold sequentially, in separate auctions. In this talk, we review a possible solution that can help solve this problem, which involves selling options for the items, instead of the items themselves. We provide a brief overview of the state of the art in this field and discuss, based on our recent results, under which conditions using option mechanisms would be desirable for both buyers and sellers, by comparison to direct auctioning of items. We conclude with a brief discussion of further research directions in this field, as well as the relation to other techniques proposed to address the problem, such as leveled commitment mechanisms

Online mechanism design for electric vehicle charging

The rapid increase in the popularity of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) is expected to place a considerable strain on the existing electricity grids, due to the high charging rates these vehicles require. In many places, the limited capacity of the local electricity distribution network will be exceeded if many such vehicles are plugged in and left to charge their batteries simultaneously. Thus, it will become increasingly important to schedule the charging of these vehicles, taking into account the vehicle owners’ preferences, and the local constraints on the network. In this paper, we address this setting using online mechanism design and develop a mechanism that incentivises agents (representing vehicle owners) to truthfully reveal their preferences, as well as when the vehicle is available for charging. Existing related online mechanisms assume that agent preferences can be described by a single parameter. However, this is not appropriate for our setting since agents are interested in acquiring multiple units of electricity and can have different preferences for these units, depending on factors such as their expected travel distance. To this end, we extend the state of the art in online mechanism design to multi-valued domains, where agents have non-increasing marginal valuations for each subsequent unit of electricity. Interestingly, we show that, in these domains, the mechanism occasionally requires leaving electricity unallocated to ensure truthfulness. We formally prove that the proposed mechanism is dominant-strategy incentive compatible, and furthermore, we empirically evaluate our mechanism using data from a real-world trial of electric vehicles in the UK. We show that our approach outperforms any fixed price mechanism in terms of allocation efficiency, while performing only slightly worse than a standard scheduling heuristic, which assumes non-strategic agents

Consider ethical and social challenges in smart grid research

Artificial Intelligence and Machine Learning are increasingly seen as key technologies for building more decentralised and resilient energy grids, but researchers must consider the ethical and social implications of their useComment: Preprint of paper published in Nature Machine Intelligence, vol. 1 (25 Nov. 2019