ACE Research Area:
Agent-Based Electricity Market Research

Last Updated: 8 June 2016

Site Maintained By:
Leigh Tesfatsion
Professor of Economics and Mathematics
Iowa State University
Ames, IA 50011-1070
http://www2.econ.iastate.edu/tesfatsi/
tesfatsi AT iastate.edu

General Resources on Electricity Restructuring
Electricity Market Open-Source Software
ACE Website
Wholesale Power Market Schematic

Table of Contents

Introduction

The U.S. electricity industry is currently undergoing substantial changes in both its structure (ownership and technology aspects) and its architecture (operational and oversight aspects). These changes involve attempts to move the industry away from highly regulated markets with administered cost-based pricing and towards competitive markets in which prices more fully reflect supply and demand forces. The goal of these changes is to provide industry participants with better incentives to control costs and introduce innovations. The process of enacting and implementing policies and laws to bring about these changes has come to be known as restructuring.

This restructuring process has been controversial. The meltdown in the restructured California wholesale power market in the summer of 2000 has shown what can happen when market designs are implemented without sufficient pre-testing. Following the California crisis, many energy researchers have eloquently argued the need to combine sound physical understanding of electric power and transmission grid operation with economic analysis of incentives in order to develop electricity markets with good real-world performance characteristics.

The goal of this resource site is to encourage the study of restructured electricity systems from a perspective that adequately addresses both economic and engineering concerns. In line with this goal, stress is placed on research making use of powerful new agent-based computational modeling tools. These tools permit restructured electricity systems to be modeled as commercial networks of strategically interacting traders and regulatory agencies learning to operate through time over realistically rendered transmission grids.

A comprehensive repository of general resources related to electricity restructuring is also available.

Basic Issues

Surveys and Overviews

Other Readings

Software, Toolkits, and Demos

Related Resource Sites and Groups

Some Early Individual Researchers

Copyright © Leigh Tesfatsion. All Rights Reserved.