About Utility Industry
Deregulation and restructuring of the utility industry have been an important area for the past decade. The regulatory body, operation environment, technologies, definition of boundary, and the nature of the electricity business have changed very fast. Therefore, it is very difficult and impossible to use the old rules or regulations, which were considered before the creation of computers, to manage and control the current power industry.
In the past, the production and distribution of electricity had been considered a natural monopoly due to the economic scale. The new power plants and transmission systems could cost several billions of dollars. Such a franchise monopoly, under protection and isolated from the competition, obviously has a much weaker incentive to control costs and avoid bad decisions. Most of the top engineering colleges in India offer branches like Electrical Engineering to develop a better understanding of the power industry.
Therefore, we have been subject to excessive costs that were unjust and unjustifiable. For example, the bad decision in the 1970s was the expansion of the power gene ratio. The state of the art in the state of Washington is one of the best motivations to deregulate and restructure the energy industry to avoid the same error.
Role of Electrical Engineering
As innovations in electrical engineering, materials science, and supporting information technologies have developed rapidly, the low cost of generating and transporting electricity has become possible. As a result, several countries have taken significant steps towards the deregulation and privatization of their electric power industry such as:
- United Kingdom
- New Zealand
Production, transportation, and distribution services were grouped into one commodity. After restructuring or deregulation, they could be treated as individual service providers and priced separately. As a result, more participants, many of whom have been excluded in making decisions on their behalf, could participate in the negotiations to create a more profitable and efficient market. The best btech colleges in Jaipur are well aware of this.
Independent System Operator (ISO)
The expansion of the power system was driven by the demand market. Security, reliability, and economic issues must be separated so that the conflict of interest in the power distribution can be avoided. This was the best incentive for the development of the Independent System Operator (ISO). To ensure a smooth transition from a regulated and protected environment to a more open and competitive market, ISO may have an important role to play.
In a restructured market, the structure of information and the decision-making process has become more decentralized and more distributed. As a result, the information processing and communication requirements between participants have been modified to reflect changes in the market structure. Decentralization of planning, management, and operations has created a demand for new methods, models, and technologies.
For example, a workshop was organized to thank the joint efforts of Pserc (Energy System Engineering Research Center) and EPRI (Institute for Research in Electrical Energy) to identify the tools and systems in engineering and economics that are necessary for the future.
In such a decentralized market, each participant should be able to remain independent in a free and open market. In addition, they can be geographically dispersed on the Internet, and technology agents can support their communication, negotiation, and coordination.
Importance of Web technology
According to the best engineering college in Rajasthan, Internet technologies and agents can be used together to develop systems for planning and operating the utility market. However, the requirements on the support operation are much higher, because a decision must be made in a few seconds if there is a demand to balance the load. We will solve the operation problem in our future research.
To prove that the Internet and multi-agent systems can be a new alternative to system expansion planning, we have developed an Internet-based multi-agent system to help participants better identify or more appropriate partnerships within the electricity market, such as suppliers and consumers. The core of the multi-agent system is a flexible multilateral trading system, developed based on the bilateral value Shapley Value (BSV).