Allocation of tie-line costs in power exchange scheduling using a multi-agent approach

After deregulations in power industries, the original boundary lines have been removed and how to support optimal cross-border electricity trade planning has become an important issue. Decentralization, or all market participants have the rights to participate in decision making, is one of the directions. In this paper a decentralized structure is suggested to solve the problem using multi-agent technology. In this structure the information centralization is prevented and each market participant behaves rationally based on local information. Although the market participants make decisions to protect its own benefits, the minimum production and transmission cost of the whole system can be finally reached. This structure is based on the method proposed in another paper by the authors and implemented on computer via a multi-agent system using Java programming language. A demonstration on a 5-area test system shows that the suggested new approach is effective and promising.