Negotiation is a fundamental tool for reaching understandings
that allow each involved party to gain an advantage for themselves by the end
of the process. In recent years, with the increasing of competitiveness in most
sectors, negotiation procedures become present in practically all of them.
One particular environment in which the competitiveness has been increasing
exponentially is the electricity markets sector. This work is directed to
the study of electricity markets’ participating entities interaction, namely
in what concerns the formation, management and operation of aggregating
entities—Virtual Power Players (VPPs). VPPs are responsible for managing
coalitions of market players with small market negotiating influence, which
take strategic advantage in entering such aggregations, to increase their
negotiating power. This chapter presents a negotiation method to create and
manage players’ coalitions. This approach is tested using MASCEM, using
this simulator’s capability of providing an adequate framework to model and
simulate VPPs. VPPs represent agents’ coalitions, capable of negotiating
in the electricity market, and internally, with their members, combining
and managing their individual characteristics and specific goals, with the
objectives and strategy of the VPP itself.
Keywords: Adaptive Systems, Aggregators, ALBidS, Artificial
Intelligence, Bid Definition, Coalitions, Context Awareness, Day-
Ahead Electricity Market, Decision Making, Distributed Generation,
Electricity Markets, Machine Learning, MASCEM, Multi-Agent Systems,
Negotiation, Producers Classification, Scenario Analysis, Simulation,
Strategic Behaviour, Virtual Power Players.
