Prosumer bidding and scheduling in electricity markets

Ottesen, Stig Ødegaard; Tomasgård, Asgeir; Fleten, Stein–Erik

doi:10.1016/j.energy.2015.11.047

Cited by 140 publications

(49 citation statements)

References 85 publications

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“…As a consequence, the optimizer requires a given scenario of the future and does not require a decision matrix concerning how to bid and operate on various markets as it will automatically choose the economically most profitable bidding strategy. This approach was deemed to be suitable, as the aim is to assess the potential value of flexibility in a market and not to assess the impact of a certain decision heuristic as in [12] or the impact of incomplete knowledge on the total revenues as in [19].…”

Section: The Optimization Towards the Spot And Power Reserve Electricmentioning

confidence: 99%

“…Already in 2013, Mancarella and Chicco [11] described the benefits emerging from the ability of multi-energy-systems to shift loads from one energy carrier to another and store energy in various forms and exploit such flexibility on ancillary services markets. As a consequence, for example, research was performed to estimate the value of the flexibility of multiple aggregated prosumers for the spot market under given bidding rules [12]. Other studies have dealt with the development of control schemes to optimize local energy management considering possibilities for market participation [13,14], stochastic market prices [15], and locally distributed intelligence for grid congestion and management [16].…”

Section: Introductionmentioning

confidence: 99%

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Monetary Value of a District’s Flexibility on the Spot- and Reserve Electricity Markets

Facchinetti

Rohrbach

Wel³

et al. 2018

Buildings

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In the future, advanced multi-energy systems are expected to handle an increasing share of fluctuating renewable energy generation through the management of multiple advanced energy conversion and storage technologies operating across different energy carriers. The market diffusion of such concepts of Local Energy Management—the management of energy supply, demand, and storage within a given geographical area—is expected to provoke a fundamental reorganization of the power generation sector. This work contributes to this topic by estimating the maximum potential economic value attained from using the flexibility of a district to take advantage of operating within multiple electricity markets at the same time. The study is based on the measured demand and production data of a newly built suburban residential district located in Central Switzerland. The actual configuration of the district and the resulting flexibility, as well as an extension with a battery storage system, is used to estimate the economic value of the flexibility. Then, an optimization algorithm manages flexible demand, production, and storage capacities in order to alternatively maximize the revenues/cost savings, self-sufficiency, or share of renewable resources of the district’s energy supply. In this vein, the impact of the way the system operates in the markets regarding the degradation of the battery is assessed and its pay-back-time is estimated. The analysis revealed a considerable profit potential associated with the district thermal and electricity storage flexibility, in particular, when operating on both the spot and reserve electricity markets. Firstly, it was shown that overall energy costs can be minimized through an optimal management of energy conversion and storage systems. Secondly, complementing the infrastructure with batteries and trading flexibility on the spot market would decrease costs by about 43%, while an additional 20% cost decrease could be captured by including trading on the reserve market. Thirdly, it has been shown that operation on the spot- and reserve market does not seem to degrade the battery more than solely operation on the spot market. However, when operating on the spot- and reserve markets, battery amortization would still take about 10 years.

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Section: The Optimization Towards the Spot And Power Reserve Electricmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Monetary Value of a District’s Flexibility on the Spot- and Reserve Electricity Markets

Facchinetti

Rohrbach

Wel³

et al. 2018

Buildings

View full text Add to dashboard Cite

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“…The intraday market bids can be positive (purchase of energy) or negative (sale of energy) and this has an effect over the total traded energy and the final imbalance at the end of both markets, defined in (18), where the terms with an upper index d correspond to results from the day-ahead market or the scheduling process for the flexible demand carried out after the day-ahead market clearing. Equation (19) forces the bidding curves to be monotonically decreasing and constraint (20) set the limits of the total offered power in both markets. The optimization problem (3), (9)- (11), and (17)- (20) derive N h bidding curves, one for each period of time t of the time horizon, with N ip pairs of possible values of energy-price, which correspond to the scenarios of intraday market energy prices.…”

Section: Intraday Marketmentioning

confidence: 99%

Aggregators’ Optimal Bidding Strategy in Sequential Day-Ahead and Intraday Electricity Spot Markets

2017

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This paper proposes a probabilistic optimization method that produces optimal bidding curves to be submitted by an aggregator to the day-ahead electricity market and the intraday market, considering the flexible demand of his customers (based in time dependent resources such as batteries and shiftable demand) and taking into account the possible imbalance costs as well as the uncertainty of forecasts (market prices, demand, and renewable energy sources (RES) generation). The optimization strategy aims to minimize the total cost of the traded energy over a whole day, taking into account the intertemporal constraints. The proposed formulation leads to the solution of different linear optimization problems, following the natural temporal sequence of electricity spot markets. Intertemporal constraints regarding time dependent resources are fulfilled through a scheduling process performed after the day-ahead market clearing. Each of the different problems is of moderate dimension and requires short computation times. The benefits of the proposed strategy are assessed comparing the payments done by an aggregator over a sample period of one year following different deterministic and probabilistic strategies. Results show that probabilistic strategy reports better benefits for aggregators participating in power markets.

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“…Integration of a consumer into various grid concepts, such as the management of the electricity costs as proposed in [15], may require appropriate communication and automatic control [16] or metering systems [17]. Incentives can, thus, be proposed to encourage prosumers to balance local production and consumption by adapting their needs to actual energy generation as, for example, by connecting or disconnecting some of their loads (flexible loads).…”

Section: Introductionmentioning

confidence: 99%

Resilient Prosumer Scenario in a Changing Regulatory Environment—The UniRCon Solution

et al. 2017

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Technological developments are pushing for new solutions based upon massive integration of renewable electricity generation in networks already facing many challenges. This paper presents a novel approach to managing the energy transfer towards prosumers making use of smart management of local energy storage. The proposed design (including storage dimensioning) is based on several operating scenarios in which the prosumer might operate as: (i) a "load only" entity (from a grid perspective), thus exhibiting investment resiliency against regulatory changes and high energy efficiency; or (ii) a prosumer, in case regulatory opportunistic profit might be available. This can be realized within a newly proposed Uni-directional Resilient Consumer (UniRCon) architecture. The major aim of the proposed architecture is to achieve optimal self-consumption while avoiding curtailment even in a changing regulatory environment like, for example, the total lack of incentives for generation based on renewable energy sources (RES). One of the major advantages of the proposed architecture consists in the adaptability to changes in the regulatory and market environment. The term resilience is used with multiple meanings: (a) the prosumer's financial resilience against regulatory changes when investment calculations assume no-grid injections; (b) the prosumer's technical resilience, with electrical design based on standalone operation; (c) the resilience of clusters of interconnected end-user installations with enabled community-level electricity exchange, independent of the existing main grid supply; (d) the contribution to grid resilience, by enabling AC microgrid (MG) operation in island mode when large portions of the grid are formed by clusters of UniRCon prosumers (the ease of islanding segmentation of the local grid in case of emergencies). For proof of concept, three use-cases are detailed: (i) photovoltaic (PV) installations connected behind the meter; (ii) PV and storage available and controllable behind the meter; and (iii) the UniRCon architecture. The three use-cases are then compared and assessed for four near-future timelines as starting points for the investment. Numerical simulations show the attractiveness of the UniRCon solution in what concerns both system operation costs and supply resilience. Savings are expressed as opportunity savings arising from difference in tariffs while charging and discharging the storage unit and due to the avoidance of curtailment, as well as special taxes for the connection of PV (depending on regulatory environment). An extension of the UniRCon concept is presented also at community scale, with neighbourhood energy exchange inside a resilient cluster.

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Prosumer bidding and scheduling in electricity markets

Cited by 140 publications

References 85 publications

Monetary Value of a District’s Flexibility on the Spot- and Reserve Electricity Markets

Monetary Value of a District’s Flexibility on the Spot- and Reserve Electricity Markets

Aggregators’ Optimal Bidding Strategy in Sequential Day-Ahead and Intraday Electricity Spot Markets

Resilient Prosumer Scenario in a Changing Regulatory Environment—The UniRCon Solution

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