Optimal Bidding Strategy for a DER Aggregator in the Day-Ahead Market in the Presence of Demand Flexibility

The penetration of distributed energy resources (DER), including distributed generators, storage devices, and demand response (DR) is growing worldwide, encouraged by environmental policies and decreasing costs. To enable DER local integration, new energy players as aggregators appeared in the elect...

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Bibliographic Details
Published in:IEEE transactions on industrial electronics (1982) Vol. 66; no. 2; pp. 1509 - 1519
Main Authors: Di Somma, Marialaura, Graditi, Giorgio, Siano, Pierluigi
Format: Journal Article
Language:English
Published: New York IEEE 01.02.2019
The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects:
Aggregator distributed energy resources (DER)
Clusters
Distributed generation
Electricity
Electricity supply industry
Energy management
Energy policy
Energy resources
Energy sources
Energy storage
Environmental policy
Flexibility
Integer programming
Linear programming
market bidding strategy
Markets
Mathematical models
Mixed integer linear programming
Optimization
stochastic mixed integer linear programming
Stochastic processes
Thermal energy
Uncertainty
ISSN:0278-0046, 1557-9948
Online Access:Get full text
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Summary:The penetration of distributed energy resources (DER), including distributed generators, storage devices, and demand response (DR) is growing worldwide, encouraged by environmental policies and decreasing costs. To enable DER local integration, new energy players as aggregators appeared in the electricity markets. This player, acting toward the grid as one entity, can offer new services to the electricity market and the system operator by aggregating flexible DER involving both DR and generation resources. In this paper, an optimization model is provided for participation of a DER aggregator in the day-ahead market in the presence of demand flexibility. This player behaves as an energy aggregator, which manages energy and financial interactions between the market and DER organized in local energy systems (LES), which are in charge to satisfy the multienergy demand of a set of building clusters with flexible demand. A stochastic mixed-integer linear programming problem is formulated by considering uncertainties of intermittent DER facilities and day-ahead market price, to find the optimal bidding strategies while maximizing the expected aggregator's profit. Numerical results show that the method is efficient in finding the bidding curves in the day-ahead market through the optimal management of flexibility requests sent to clusters, as well as of DER in LES and interactions among LES.
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ISSN:0278-0046
1557-9948
DOI:10.1109/TIE.2018.2829677