Bidding Strategy for the Alliance of Prosumer Aggregators in the Distribution Market

Chunyi Wang, Jiawei Xing, Yuejiao Wang, Jing Xu, Zhixin Fu (), Benjie Xu and Haoming Liu
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Chunyi Wang: State Grid Shandong Electric Power Company, Jinan 250001, China
Jiawei Xing: State Grid Shandong Electric Power Research Institute, Jinan 250002, China
Yuejiao Wang: State Grid Shandong Electric Power Research Institute, Jinan 250002, China
Jing Xu: School of Electrical and Power Engineering, Hohai University, Nanjing 211100, China
Zhixin Fu: School of Electrical and Power Engineering, Hohai University, Nanjing 211100, China
Benjie Xu: School of Electrical and Power Engineering, Hohai University, Nanjing 211100, China
Haoming Liu: School of Electrical and Power Engineering, Hohai University, Nanjing 211100, China

Energies, 2024, vol. 17, issue 19, 1-17

Abstract: Photovoltaic energy storage system (PV-ESS) prosumer aggregators are characterized by a large number but small scale in the distribution system and are not competitive enough to participate in market transactions. For this reason, a prosumer aggregator alliance is proposed to participate in the distribution market bidding strategy. Firstly, based on the framework for prosumer aggregator alliances participating in distribution market trading, a bilevel bidding model is constructed. The upper level represents the optimal decision-making model for the prosumer aggregators, while the lower level constitutes the distribution market-clearing model. Secondly, the additional benefits obtained by the alliance are distributed more fairly using the improved Shapley value based on the PV self-consumption rate. Given the problem that the traditional diagonalization algorithm (DA) has an excessive number of iterations when solving the game equilibrium problem of multiple subjects, the DA is improved by optimizing the initial value of the inputs. Finally, case studies are conducted based on the improved IEEE-33 bus distribution system to validate the feasibility and economic viability of the proposed strategy. The case study results show that forming cooperative alliances to participate in market bidding can significantly increase overall profits. The improved DA reduces the number of bids and computation time by 75% and 80%, respectively. Additionally, the improved Shapley value facilitates compensation for some of the aggregators.

Keywords: prosumer aggregators; distribution markets; improved Shapley values; improved diagonalization algorithm (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: 2024
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