A Profitability Analysis for an Aggregator in the Ancillary Services Market: An Italian Case Study

Carmine Cancro, Camelia Delcea, Salvatore Fabozzi, Gabriella Ferruzzi, Giorgio Graditi, Valeria Palladino and Maria Valenti
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Carmine Cancro: ENEA, Italian National Agency for New Technologies, Energy and Sustainable Economic Development, 00123 Rome, Italy
Camelia Delcea: Department of Economic Informatics and Cybernetics, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Salvatore Fabozzi: ENEA, Italian National Agency for New Technologies, Energy and Sustainable Economic Development, 00123 Rome, Italy
Gabriella Ferruzzi: ENEA, Italian National Agency for New Technologies, Energy and Sustainable Economic Development, 00123 Rome, Italy
Giorgio Graditi: ENEA, Italian National Agency for New Technologies, Energy and Sustainable Economic Development, 00123 Rome, Italy
Valeria Palladino: ENEA, Italian National Agency for New Technologies, Energy and Sustainable Economic Development, 00123 Rome, Italy
Maria Valenti: ENEA, Italian National Agency for New Technologies, Energy and Sustainable Economic Development, 00123 Rome, Italy

Energies, 2022, vol. 15, issue 9, 1-26

Abstract: The integration of renewable energy sources into the energy system requires both new investment in network infrastructures, and the introduction of new models of energy management. In this framework, new structures of collaborations were born: the aggregator is one of them. It involves grouping different players of the power system, acting, however, as a single entity both when it participates in the electricity markets and sells services to the operator. In this work, a new methodology to determine the optimal revenue of a Unità Virtuali Abilitate Miste (UVAM), which is an Italian virtual energy unit managed by an aggregator, is proposed. The methodology is articulated in several steps, the core of which is represented by the two models: (1) a cost–benefit analysis in order to identify the main costs/benefits that impact on the UVAM’ revenues; and (2) a decision-making model based on the sensitive analysis to capture the optimal interaction between users and aggregator. The results show how, on varying the parameter costs depending on the aggregator-users’ strategy, it is possible to obtain different optimal “working-points”. Finally, the analysis identifies two main cost factors that impact on the optimal revenue: the Energy Management Platform and the Communication costs, confirming the importance of these parameters in the general economy of UVAM.

Keywords: aggregator; energy management model; virtual energy units; ancillary services 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: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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