An autonomous broker that liaises between retail customers and power-generating companies (GenCos) is essential for the smart grid ecosystem. The efficiency brought in by such brokers to the smart grid setup can be studied through a well-developed simulation environment. In this paper, we describe the design of one such energy broker called VidyutVanika21 (VV21) and analyze its performance using a simulation platform called PowerTAC (PowerTrading Agent Competition). Specifically, we discuss the retail (VV21–RM) and wholesale market (VV21–WM) modules of VV21 that help the broker achieve high net profits in a competitive setup. Supported by game-theoretic analysis, the VV21–RM designs tariff contracts that a) maintain a balanced portfolio of different types of customers; b) sustain an appropriate level of market share, and c) introduce surcharges on customers to reduce energy usage during peak demand times. The VV21–WM aims to reduce the cost of procurement by following the supply curve of the GenCo to identify its lowest ask for a particular auction which is then used to generate suitable bids. We further demonstrate the efficacy of the retail and wholesale strategies of VV21 in PowerTAC 2021 finals and through several controlled experiments.

VidyutVanika21: An Autonomous Intelligent Broker for Smart-grids

We present a Nash equilibrium analysis for single-buyer singleseller multi-unit k-double auctions for scaling-based bidding strategies. We then design a Deep Deterministic Policy Gradient (DDPG) based learning strategy, DDPGBBS, for a participating agent to suggest bids that approximately achieve the above Nash equilibrium. We expand DDPGBBS to be helpful in more complex settings with multiple buyers/sellers trading multiple units in a Periodic Double Auction (PDA), such as the wholesale market in smart-grids. We demonstrate the efficacy of DDPGBBS with Power Trading Agent Competition’s (PowerTAC) wholesale market PDA as a testbed.

Multi-unit Double Auctions: Equilibrium Analysis and Bidding Strategy using DDPG in Smart-grids

The PowerTAC competition provides a multi-agent simulation platform for electricity markets, in which intelligent agents acting as electricity brokers compete with each other aiming to maximize their profits. Typically, the gains of agents increase as the number of their customers rises, but in parallel, costs also increase as a result of higher transmission fees that need to be paid by the electricity broker. Thus, agents that aim to take over a disproportionately high share of the market, often end up with losses due to being obliged to pay huge transmission capacity fees. In this paper, we present a novel trading strategy that, based on this observation, aims to balance gains against costs; and was utilized by the champion of the PowerTAC-2020 tournament, TUC-TAC. The approach also incorporates a wholesale market strategy that employs Monte Carlo Tree Search to determine TUC-TAC’s best course of action when participating in the market’s double auctions. The strategy is improved by making effective use of a forecasting module that seeks to predict upcoming peaks in demand, since in such intervals incurred costs significantly increase. A post-tournament analysis is also included in this paper, to help draw important lessons regarding the strengths and weaknesses of the various strategies used in the PowerTAC-2020 competition.

Stefanos Kontos

Papers

Aiming for Half Gets You to the Top: Winning PowerTAC 2020