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An Application of Agent-based Simulation to the New Electricity Trading Arrangements of England and Wales

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Author Info
Derek W. Bunn and Fernando Oliveira

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Abstract

This paper presents a large-scale application of multi-agent, evolutionary modelling to the proposed new electricity trading arrangements (NETA) in the UK. This is a detailed, plant-by-plant model with an active specification of the demand side of the market. NETA involves a bilateral forwards market followed by a balancing mechanism, and then an imbalance settlement process. This agent-based simulation model has been able to provide pricing and strategic insights, ahead of NETA's actual introduction, to an extent which have eluded conventional economic analysis.

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Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2001 with number 93.

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Date of creation: 01 Apr 2001
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Handle: RePEc:sce:scecf1:93

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Web page: http://www.econometricsociety.org/conference/SCE2001/SCE2001.html
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Related research
Keywords: Simulation: intelligent agents; Evolutionary economics; Electricity: competitive markets; Imperfect competition; Market design;

Find related papers by JEL classification:
C6 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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