This project will explore the potential of a distributed approach to self-optimization and self-healing in the Smart Grid environment. New distributed market mechanisms for multi-criteria egotiation on the basis of which adaptive groups/clusters of energy resource providers and consumers can collectively balance supply and demand in the global market by local coordination will be proposed. Both local and global stability are the goal.

To achieve cost-effective and technical sound supply and demand balance, an effective forecasting tool is required for predicting the output of distributed resources, market price and demand response. In this proposal producers and consumers are represented by agents. Agents negotiate service level agreements for cluster participation.

The framework to be developed includes:

(1) agent models for resource consumers and resource providers,

(2) clustering algorithms as the basis for coordination: criteria and objectives

(3) market mechanisms and negotiation strategies for cluster

formation/reconfiguration,

(4) effective forecasting tool with which different markets can be explored.

The total cost of the Project is 71.32 lakhs.