Decentralized Control of DR Using a Multi-agent Method

Demand response (DR) is one of the most cost-effective elements of residential and small industrial building for the purpose of reducing the cost of energy. Today with broadening of the smart grid, electricity market and especially smart home, using DR can reduce cost and even make profits for consumers. On the other hand, utilizing centralized controls and have bidirectional communications Bi-directional communication between DR aggregators and consumers make many problems such as scalability and privacy violation. In this chapter, we propose a multi-agent method based on a Q-learning algorithm Q-learning algorithm for decentralized control of DR. Q-learning is a model-free reinforcement learning Reinforcement learning technique and a simple way for agents to learn how to act optimally in controlled Markovian domains. With this method, each consumer adapts its bidding and buying strategy over time according to the market outcomes. We consider energy supply for consumers such as small-scale renewable energy generators. We compare the result of the proposed method with a centralized aggregator-based approach that shows the effectiveness of the proposed decentralized DR market Decentralized DR market.