Assessment of generation expansion mechanisms using multi-agent systems

Abstract

Generation adequacy is a major issue in market design, particularly in the aftermath of the California crisis. Different approaches for mechanisms have been developed to promote a ldquohealthyrdquo investment for generation expansion. However few tools are available to study the effect of these incentives. This paper presents a multi-agent based toolbox for studying the effects of the different mechanisms to promote generation expansion. This paper shows that agent-based modeling provides a flexible framework that enables the regulatory authorities to perform comprehensive assessments of the different mechanisms in a particular power system.