Agent-based modelling and simulation of smart electricity grids and markets – A literature review

The realisation of the smart grids and markets vision constitutes a substantial transition of electricity systems affecting multiple stakeholders and creating various technical, social, economic, political, and environmental challenges. These need to be considered adequately in decision support tools for agents in electricity systems. Agent-based modelling and simulation as a flexible and rich modelling framework can serve as a testbed for analysing new paradigms in the field of smart grids, such as demand response, distributed generation, distribution grid modelling, and efficient market integration. While so far wholesale electricity markets have been the focus of agent-based modelling and simulation, this paper provides a detailed review of literature using such techniques for analysing smart grids from a systems perspective. For that purpose, a general classification of applying agent-based modelling and simulation techniques to electricity systems is provided. The literature review of specifically using agent-based modelling and simulation for analysing smart grids shows that, although being still a limited field of research, quite different applications are identified with the number of contributions having increased in recent years. Agent-based modelling and simulation can deliver specific insights in how different agents in a smart grid would interact and which effects would occur on a global level. Thereby, the approach can deliver valuable input for decision processes of stakeholders and policy making. Future research could feature more focused analyses of storage systems, local market concepts, interactions with centralised markets, and the role of intermediaries.

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