Prosumer Community Portfolio Optimization via Aggregator: The Case of the Iberian Electricity Market and Portuguese Retail Market

Ricardo Faia, Tiago Pinto, Zita Vale and Juan Manuel Corchado
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Ricardo Faia: Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development (GECAD), Polytechnic of Porto, Rua DR. António Bernardino de Almeida, 431, 4200-072 Porto, Portugal
Tiago Pinto: Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development (GECAD), Polytechnic of Porto, Rua DR. António Bernardino de Almeida, 431, 4200-072 Porto, Portugal
Zita Vale: Polytechnic of Porto, Rua DR. António Bernardino de Almeida, 431, 4200-072 Porto, Portugal
Juan Manuel Corchado: BISITE Research Centre, University of Salamanca, Calle Espejo, 12, 37007 Salamanca, Spain

Energies, 2021, vol. 14, issue 13, 1-20

Abstract: The participation of household prosumers in wholesale electricity markets is very limited, considering the minimum participation limit imposed by most market participation rules. The generation capacity of households has been increasing since the installation of distributed generation from renewable sources in their facilities brings advantages for themselves and the system. Due to the growth of self-consumption, network operators have been putting aside the purchase of electricity from households, and there has been a reduction in the price of these transactions. This paper proposes an innovative model that uses the aggregation of households to reach the minimum limits of electricity volume needed to participate in the wholesale market. In this way, the Aggregator represents the community of households in market sales and purchases. An electricity transactions portfolio optimization model is proposed to enable the Aggregator reaching the decisions on which markets to participate to maximize the market negotiation outcomes, considering the day-ahead market, intra-day market, and retail market. A case study is presented, considering the Iberian wholesale electricity market and the Portuguese retail market. A community of 50 prosumers equipped with photovoltaic generators and individual storage systems is used to carry out the experiments. A cost reduction of 6–11% is achieved when the community of households buys and sells electricity in the wholesale market through the Aggregator.

Keywords: aggregator; Iberian electricity market; portfolio optimization; prosumer; Portuguese retail market (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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