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

Hong Tang and Shengwei Wang

Renewable Energy, 2022, vol. 201, issue P1, 35-45

Abstract: Well-managed demand-side flexibility can effectively alleviate the stress of power systems caused by the increasing renewable energy penetration. The development of smart grid technologies provides win-win opportunities for system operators and demand-side users. Buildings have great flexibility potential through smart control of flexible loads, passive thermal mass storage and distributed active storage. However, a few fundamental problems on flexibility quantification, optimal coordination and profits sharing are faced when aggregating buildings to reach sufficient size for biding multiple flexibility services in electricity markets. Therefore, this paper proposes a multi-level optimal dispatch strategy and profit-sharing mechanism for non-residential building clusters to maximize flexibility profits and reduce the complexity of the optimization. At building level, a model-based quantification method is developed to evaluate flexibility potential of multiple resources. At cluster level, the coordinated bidding strategy of the aggregator is proposed, and flexibility profits are distributed based on the cooperative game theory at the post-market stage. Test results show that the proposed dispatch strategy can reduce up to 20.4% of daily electricity cost at cluster level and ensure profit increase of individual buildings with different flexibility characteristics. The active participation of building clusters in electricity markets could reduce the use of costly backup generators.

Keywords: Demand-side flexibility; Building flexibility quantification; Bidding strategy; Cooperative game theory; Shapley value (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148122015828
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:201:y:2022:i:p1:p:35-45

DOI: 10.1016/j.renene.2022.10.089

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().