A cooperative power trading system based on satisfaction space technology

This paper proposed a new power trading system model designed to ensure customer cooperation with power suppliers. Designed as an Internet application, the cooperative power trading system modelled power markets using a satisfaction space technology A network model of electric power trading systems was developed to create a communication network system that consisted of suppliers, customers, and auctioneers. When demand exceeded supply, the auctioneer in the trading system requested power reductions from customers. Rewards were paid to maintain the degree of satisfaction of the customers. The supplier's evaluation function was defined as a function of market price and power supply. A power reducing method was developed using a combinatorial optimization technique. Suppliers and customers submitted bids for initial power trading quantities, while the auctioneer decided a market price based on bidding values. After receiving the market price, suppliers and customers submitted a second set of bids for expected power trading quantities. A power reduction plan was then developed by the auctioneer to balance the amount of power supply and demand. The system can be applied to customers whose evaluation functions cannot be estimated beforehand, as the auctioneer was able to choose the most efficient power reduction point selected by consumers using a maximum steep slope method. Simulations conducted to validate the trading system demonstrated that the system is capable of choosing efficient energy reduction plans. 6 refs., 4 tabs., 3 figs