GreenLine: A delay-tolerant mechanism design for grid capacity allocation

Athina Georgara, Jayati Deshmukh, Sarvapali D Ramchurn

Keywords: mechanism design, power grid, resource allocation

Abstract: Integrating renewable power plants (RPPs) in the power grid is a challenging task, which becomes even harder due to different types of uncertainties. On the one hand, RPP owners want to maximise their profits by installing new power plants in the grid. On the other hand, the Distribution Network Operator (DNO) seeks to maximise the generated power while reducing potential installation delays due to growing power demand. In this work, we formulate this setting as a multi-agent system with two types of agents: RPP owners, which place bids to install new power plants in the grid, and a central DNO agent, which can select which bids to accept. We put forward GreenLine, a new auction-based mechanism for integrating renewable power plants in the power grid. We study two variations of the setting: (i) the DNO integrates RPPs considering only line capacity constraints, (ii) the DNO integrates RPPs considering line capacity constraints and reinforcement costs. Then we discuss desirable properties of our mechanism, such as incentive compatibility (IC), individual rationality (IR) and economical efficiency (EE), and provide theoretical results.

Area: Engineering and Analysis of Multiagent Systems (EMAS)

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Submission Number: 741