Matching Demand with Supply in the Smart Grid using Agent-Based Multiunit Auction

TL;DR

This paper presents an agent-based multiunit auction method to match demand with supply in the smart grid, reducing peak-to-average ratio and system costs while benefiting consumers and providers.

Contribution

It introduces a supply-side demand reduction approach using intelligent agents and multiunit auctions, aligning with smart grid future visions.

Findings

Reduces overall system cost

Benefits both consumers and energy providers

Effectively cuts peak-to-average ratio

Abstract

Recent work has suggested reducing electricity generation cost by cutting the peak to average ratio (PAR) without reducing the total amount of the loads. However, most of these proposals rely on consumer's willingness to act. In this paper, we propose an approach to cut PAR explicitly from the supply side. The resulting cut loads are then distributed among consumers by the means of a multiunit auction which is done by an intelligent agent on behalf of the consumer. This approach is also in line with the future vision of the smart grid to have the demand side matched with the supply side. Experiments suggest that our approach reduces overall system cost and gives benefit to both consumers and the energy provider.