Digital Dynamic Agent (DDA) Driven Energy Contract Negotiation

Abstract Digital Dynamic Agent (DDA) introduces the new paradigm of digital dynamic agent-driven energy contract negotiation, which is dynamic and real-time in adjustment. Long-term static contracts normally produce one-sided traditional market outcomes. On the contrary, DDA driving will be continuous in nature, at a level of rapid negotiations over the underlying transactions. This paper proposes a new generic DDA framework that negotiates energy contracts between grid agents and renewable generation sources, especially wind farms equipped with battery storage. The agents dynamically update their strategy concerning realtime market conditions, demand, and storage capacity. By simulation over one week with real data from the wind farms, it is evident that the DDA framework is better adapted in using battery storage for significantly lesser wastage of energy. Interestingly, the system secured energy at competitive prices in both live energy and capacity markets; it showed an improvement in cost savings compared to conventional static contracts. It also allows for effective energy procurement within diverse market states, which enables greater flexibility and responsiveness in energy management through the optimization of the negotiation process. The current paper highlights the capability of the framework to enhance negotiation outcomes while allowing the broader transition toward renewable energy markets.