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Network-constrained bidding optimization strategy for aggregators of prosumers

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  • Iria, José
  • Scott, Paul
  • Attarha, Ahmad

Abstract

The large-scale deployment of smart home technologies will unlock the flexibility of prosumers, which in turn will be transformed into electricity market services by aggregators. This paper proposes a new network-constrained bidding optimization strategy to coordinate the participation of aggregators of prosumers in the day-ahead energy and secondary reserve markets. This bidding optimization strategy consists of a decentralized approach based on the alternating direction method of multipliers, where aggregators negotiate with the distribution system operator to obtain network-constrained energy and secondary reserve bids. For a case study of 2 aggregators and 1 distribution system operator, the results show that the network-constrained bidding strategy computes cost-effective and network-feasible energy and secondary reserve bids, as opposed to a network-free bidding strategy. In addition, the network-constrained bidding strategy preserves the independent roles of aggregators and the distribution system operator, and the data privacy of all agents.

Suggested Citation

  • Iria, José & Scott, Paul & Attarha, Ahmad, 2020. "Network-constrained bidding optimization strategy for aggregators of prosumers," Energy, Elsevier, vol. 207(C).
    • Handle: RePEc:eee:energy:v:207:y:2020:i:c:s0360544220313736
    DOI: 10.1016/j.energy.2020.118266
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    References listed on IDEAS

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    1. Iria, José & Scott, Paul & Attarha, Ahmad & Gordon, Dan & Franklin, Evan, 2022. "MV-LV network-secure bidding optimisation of an aggregator of prosumers in real-time energy and reserve markets," Energy, Elsevier, vol. 242(C).
    2. Barja-Martinez, Sara & Aragüés-Peñalba, Mònica & Munné-Collado, Íngrid & Lloret-Gallego, Pau & Bullich-Massagué, Eduard & Villafafila-Robles, Roberto, 2021. "Artificial intelligence techniques for enabling Big Data services in distribution networks: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    3. Coelho, António & Iria, José & Soares, Filipe, 2021. "Network-secure bidding optimization of aggregators of multi-energy systems in electricity, gas, and carbon markets," Applied Energy, Elsevier, vol. 301(C).
    4. Piao, Longjian & de Vries, Laurens & de Weerdt, Mathijs & Yorke-Smith, Neil, 2021. "Electricity markets for DC distribution systems: Locational pricing trumps wholesale pricing," Energy, Elsevier, vol. 214(C).
    5. Đorđe Lazović & Željko Đurišić, 2023. "Advanced Flexibility Support through DSO-Coordinated Participation of DER Aggregators in the Balancing Market," Energies, MDPI, vol. 16(8), pages 1-26, April.
    6. Domagoj Badanjak & Hrvoje Pandžić, 2021. "Distribution-Level Flexibility Markets—A Review of Trends, Research Projects, Key Stakeholders and Open Questions," Energies, MDPI, vol. 14(20), pages 1-26, October.
    7. Sun, Guoqiang & Shen, Sichen & Chen, Sheng & Zhou, Yizhou & Wei, Zhinong, 2022. "Bidding strategy for a prosumer aggregator with stochastic renewable energy production in energy and reserve markets," Renewable Energy, Elsevier, vol. 191(C), pages 278-290.
    8. Tsaousoglou, Georgios & Giraldo, Juan S. & Paterakis, Nikolaos G., 2022. "Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    9. Zhang, Jingrui & Zhou, Yulu & Li, Zhuoyun & Cai, Junfeng, 2021. "Three-level day-ahead optimal scheduling framework considering multi-stakeholders in active distribution networks: Up-to-down approach," Energy, Elsevier, vol. 219(C).
    10. Nykyri, Mikko & Kärkkäinen, Tommi J. & Levikari, Saku & Honkapuro, Samuli & Annala, Salla & Silventoinen, Pertti, 2022. "Blockchain-based balance settlement ledger for energy communities in open electricity markets," Energy, Elsevier, vol. 253(C).
    11. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    12. Tang, Hong & Wang, Shengwei, 2022. "Multi-level optimal dispatch strategy and profit-sharing mechanism for unlocking energy flexibilities of non-residential building clusters in electricity markets of multiple flexibility services," Renewable Energy, Elsevier, vol. 201(P1), pages 35-45.
    13. Zhou, Ze & Liu, Zhitao & Su, Hongye & Zhang, Liyan, 2022. "Integrated pricing strategy for coordinating load levels in coupled power and transportation networks," Applied Energy, Elsevier, vol. 307(C).

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