Optimal Bidding Strategies for the Participation of Aggregators in Energy Flexibility Markets

Gian Giuseppe Soma, Giuseppe Marco Tina () and Stefania Conti
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Gian Giuseppe Soma: Consorzio Multi Ente per la Promozione e L’adozione di Tecnologie di Calcolo Avanzato (COMETA), 95123 Catania, Italy
Giuseppe Marco Tina: Department of Electrical Electronic and Computer Engineering, University of Catania, 95125 Catania, Italy
Stefania Conti: Department of Electrical Electronic and Computer Engineering, University of Catania, 95125 Catania, Italy

Energies, 2025, vol. 18, issue 11, 1-20

Abstract: The increasing adoption of Renewable Energy Sources (RESs), due to international energy policies mainly related to the decarbonization of electricity production, raises several operating issues for power systems, which need “flexibility” in order to guarantee reliable and secure operation. RESs can be considered examples of Distributed Energy Resources (DERs), which are typically electric power generators connected to distribution networks, including photovoltaic and wind systems, fuel cells, micro-turbines, etc., as well as energy storage systems. In this case, improved operation of power systems can be achieved through coordinated control of groups of DERs by “aggregators”, who also offer a “flexibility service” to power systems that need to be appropriately remunerated according to market rules. The implementation of the aggregator function requires the development of tools to optimally operate, control, and dispatch the DERs to define their overall flexibility as a “market product” in the form of bids. The contribution of the present paper in this field is to propose a new optimization strategy for flexibility bidding to maximize the profit of the aggregator in flexibility markets. The proposed optimal scheduling procedure accounts for important practical and technical aspects related to the DERs’ operation and their flexibility estimation. A case study is also presented and discussed to demonstrate the validity of the method; the results clearly highlight the efficacy of the proposed approach, showing a profit increase of 10% in comparison with the base case without the use of the proposed methodology. It is evident that quantitatively more significant results can be obtained when larger aggregations (more participants) are considered.

Keywords: distributed energy resources; aggregator; ancillary services; flexibility; electricity market; bidding strategy (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: 2025
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