Multi-agent systems in energy and environment pollution trading

Zbigniew Nahorski (Systems Research Institute)    Zbigniew.Nahorski >at>

Description: Energy production is a main factor of atmospheric pollution, both as to the “shorter-range” pollutions, like sulfur or nitrogen oxides, and “global-range” ones, like greenhouse gases. Among policy tools leading to mitigation of pollutants emissions there is trading of pollution permits. Within this trading these firms which can cheaper reduce the pollution emissions can sell their permits to those which cannot reduce the emissions cheap enough.
One way of reducing emissions is to develop renewable sources of energy. However, production of energy from many of the renewable sources depends on natural phenomena of stochastic nature, like wind or sunshine, with high unpredictable volatility. Trading of energy in these conditions, and particularly of the electrical energy, in necessary short times to account for its variability, is impossible for a man. It can be, however, done by computers, who can negotiate each other and take decisions on buying/selling the energy within a part of a second. A suitable trading environment for trading is offered by the multi-agent systems.
The aim of the project is to develop a theoretical basis of trade and auctions of energy by computer agents, taking into account information on potentials of energy production, on the one side, possibility/necessity of using it on the other side, and finally technical restrictions on delivery of the energy from the production to consumption sites. Further, an important part will be to develop intelligent agents, which will be able to play on the market taking into account not only trading negotiations but also the status of the underlying energy source or sink device, and prediction of its energy driving natural phenomena, as well as impacts of the decision on pollution emissions and trading them on the pollution emission permit market. Finally, the computer simulation software will be developed where different strategies used by agents will be analyzed. There is a possibility that the results developed will be implemented in a pilot real energy distribution systems. The project outlined above will be developed by a group of researchers and more than one PhD thesis might be prepared within it.
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