Prosumer bidding and scheduling in electricity markets

Stig Ødegaard Ottesen, Asgeir Tomasgard and Stein-Erik Fleten

Energy, 2016, vol. 94, issue C, 828-843

Abstract: We propose short-term decision-support models for aggregators that sell electricity to prosumers and buy back surplus electricity. The key element is that the aggregator can control flexible energy units at the prosumers. Our objective is total cost minimization by trading in an electricity spot market also taking into consideration costs from grid tariffs, use of fuels and imbalance penalization. We explicitly model the flexibility properties of the underlying energy systems in the prosumers' buildings. In addition, we include the bidding rules and handle the interrelations between hours. Finally, we capture the information structure of uncertain parameters through scenario trees. This results in a two-stage stochastic mixed integer linear program where the bidding decision is made in the first stage and the scheduling in the second. We illustrate the approach in a case study with a diverse portfolio of prosumers. By simulating over a two-month period, we calculate the value of flexibility and the value of stochastic planning.

Keywords: Demand side bidding; Electricity markets; Smart grids; Short term flexibility; Stochastic programming (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:94:y:2016:i:c:p:828-843

DOI: 10.1016/j.energy.2015.11.047

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