Agent based energy management systems

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In liberalized energy markets, various participants—including producers, consumers, transmission and distribution operators, and regulatory authorities—exhibit both divergent and convergent interests. While entities like loads, power plants, and grid operators often prioritize their own benefits, this competitive dynamic can jeopardize shared goals such as voltage stability, constant system frequency, and efficient energy management. Challenges arise from the increased integration of volatile energy sources, the displacement of stabilizing bulk generation, and the slow expansion of the electric grid. There is a global consensus that these issues can be effectively addressed through information and communication technologies, which facilitate better coordination of grid operations. The concept of “Smart Grid” encompasses efforts to utilize unused reserves and provide system services, like reactive power supply, to maintain voltage levels. Multi-agent systems serve as a fitting framework for modeling the behaviors and interests of diverse market participants, accommodating both cooperative and competitive problem-solving in distribution and transmission systems. This approach necessitates modifications to conventional algorithms, enabling convergence to multiple local optima based on limited system information. It emphasizes that personal benefits can be maximized while adhering to global system requirements, highlighting the ne