A multi-agent system approach to model the interaction between distributed generation deployment and the grid

This paper introduces a multi-agent dynamical system of the interaction between electricity consumers, the electricity distribution system operator, and the technological (generation, storage) and regulatory (tariff design, incentive schemes) environments. For any type of environment, our dynamical system simulates the evolution of the deployment of distributed electricity generation, as well as the evolution of the cost of distribution. The system relies on the assumption that individual electricity consumers behave statistically as rational agents, who may invest in optimised distributed renewable energy installations, if they are cost-efficient compared to the retail electricity tariff. The deployment of these installations induces a change in the aggregated net consumption and generation of the users of a distribution network. By modelling the cost recovery mechanism of the distribution system operator, the system simulates the evolution of the retail electricity tariff in response to such a change in the aggregated consumption and production.