Cross-sectoral coordination in highly interconnected multi-operator energy systems – A distributed framework with autonomous agents

Abstract

Facing the intertwined challenges in the energy sector of achieving net-zero carbon emissions and integrating renewable energies, there is a pressing need for innovative solutions that are also capable of addressing inefficiencies in existing coordination frameworks. Therefore, this paper proposes a novel distributed framework with autonomous agents to facilitate cross-sectoral coordination of interconnected multi-operator energy systems. The technology-independent framework is applicable to various multi-energy systems and enhances economic transparency and consistency in financial settlements. By introducing pairwise dependencies, the approach restricts information exchange to bilateral communication between physically connected agents, ensuring the autonomy and confidentiality of commercially sensitive and critical infrastructurerelated information. Additionally, the framework supports fully distributed and parallel cooptimization of all agents, eliminating the need for centralized coordination and reducing communication steps per iteration. A comprehensive case study focusing on a decarbonized scenario of Germany underscores the framework's tractability and scalability, suggesting its suitability for large-scale applications. Equivalent results to a single-operator framework are obtained, highlighting the framework's potential to offer market-driven incentives for efficient resource allocation. Different indicators for convergence are introduced and assessed regarding the intricacies of the financial settlement process of the framework.

Keywords: OR in energy, cross-sectoral coordination, distributed market-clearing, multi-operator energy systems, autonomous agents

JEL Classification: C61, C63, Q40, Q41, Q43