Business cases of aggregated flexibilities in multiple electricity markets in a European market design

Schwabeneder, Daniel; Corinaldesi, Carlo; Lettner, Georg; Auer, Hans

doi:10.1016/j.enconman.2020.113783

Cited by 25 publications

(15 citation statements)

References 4 publications

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“…A further possibility for the commercial usage of flexibility is the trading at the electricity markets such as the EEX or the European Power Exchange (EPEX). Several studies show the potential for participation in the electricity markets for EV [27,28] and households [29,30], in the majority of cases via aggregation. The peer-2-peer markets represent another possibility of using the flexibility available on the local level, in the low voltage grid.…”

Section: Market-oriented Control Of End-usersmentioning

confidence: 99%

Extended Residential Power Management Interface for Flexibility Communication and Uncertainty Reduction for Flexibility System Operators

et al. 2022

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The high importance of demand-side management for the stability of future smart grids came into focus years ago and is today undisputed among a wide spectrum of energy market participants, and within the research community. The increasing development of communication infrastructure, in tandem with the rising transparency of power grids, supports the efforts for deploying demand-side management applications. While it is then accepted that demand-side management will yield positive contributions, it remains challenging to identify, communicate, and access available flexibility to the flexibility managers. The knowledge about the system potential is essential to determine impacts of control and adjustment signals, and employ temporarily required demand-side flexibility to ensure power grid stability. The aim of this article is to introduce a methodology to determine and communicate local flexibility potential of end-user energy systems to flexibility managers for short-term access. The presented approach achieves a reliable calculation of flexibility, a standardized data aggregation, and a secure communication. With integration into an existing system architecture, the general applicability is outlined with a use case scenario for one end-user energy system. The approach yields a transparent short-term flexibility potential within the flexibility operator system.

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Section: Market-oriented Control Of End-usersmentioning

confidence: 99%

Extended Residential Power Management Interface for Flexibility Communication and Uncertainty Reduction for Flexibility System Operators

et al. 2022

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“…Some research the economic potential of the IDM (Menke et al 2017), whereas others combine the DAM with the IDM to optimise cost (Hedegaard et al 2017). Considering multiple market mechanisms can significantly improve the economic efficiency of DR (Schwabeneder et al 2021), these types of spot market-based DR is called time-of-use pricing and is part of the price-based DR class (Jordehi 2019). The potential cost-and emission-reduction through DR increases with renewable energy penetration (McPherson & Stoll 2020).…”

Section: Current Status Of Dr Applicationsmentioning

confidence: 99%

“…The future market doesn't reward flexibility by applying a fixed price for energy, leaving only the DAM and IDM as regular markets. Combining multiple markets significantly increases performance of the strategy (Schwabeneder et al 2021), while the increase in RES causes a growing relevance for both the DAM and IDM.…”

Section: Market Mechanismsmentioning

confidence: 99%

“…IDM trading occurs with a shrinking horizon stretching until the next DAM bid is made. The combination of both the DAM and IDM has been shown to significantly improve performance compared to participating in a single market (Schwabeneder et al 2021). While the other alternative, the current strategy involving the future market, does not reward flexibility in consumption.…”

Section: Economic Mpc Formulation With Multiple Marketsmentioning

confidence: 99%

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Multi-market demand response from pump-controlled open canal systems: an economic MPC approach to pump-scheduling

Heijden

Lugt

Nooijen

et al. 2022

Journal of Hydroinformatics

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Participation in demand response (DR) has been explored for many large energy-using assets based on day ahead electricity markets. In this manuscript, we propose the use of multiple electricity spot markets to enable price-based DR for open canal systems in the Netherlands, where many large pumping stations are used for flood mitigation and control of groundwater levels. In the new strategy for pump-scheduling, we combine the day ahead and intraday electricity markets to be used in a hierarchical receding horizon economic Model Predictive Control (MPC). We formulate the decision problem as a Mixed-Integer Quadratic Problem (MIQP), to be solved to near global optimality. A cost-potential analysis was performed for multiple market strategies and the automatic Frequency Restoration Reserves (aFRRs), using actual market and water system data. We show new insights into the trade-off between CO2 emissions and operating cost, the difference between the German and Dutch markets, and temporal changes in market conditions due to renewable energy integration. We observe that the German energy market is rewarding DR more than the Dutch equivalent, due to the higher renewable energy market penetration. The proposed multi-market strategy leads to a cost decrease of 10 and 16% in the Netherlands in 2017 and 2019, respectively. When applying German market scenarios, we found a cost-saving potential of 56 and 50% in 2017 and 2019, respectively. The cost-saving potential for the aFRR market was found to be up to 12% in the Netherlands and 28% in Germany, through a conservative analysis. The results suggest that the proposed control system, optimising costs over the day ahead, intraday and possibly the aFRR markets, is profitable compared to the current strategy in both the current and future electricity market.

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“…Compared with traditional grid-side generators, these consumer-side DERs are much smaller in capacity, more geographically dispersed, and more complex to schedule due to different uncertainties [2]. Thus, aggregators are widely adopted to act as an intermediary between power system operators and DERs [3]. For instance, the Federal Energy Regulatory Commission (FERC) in the U.S. issued a notice that would require transmission organizations and system operators to create rules to enable aggregated DERs to participate in wholesale markets.…”

Section: A Motivationsmentioning

confidence: 99%

Selection Game for Consensus-Based Decentralized Aggregators of Distributed Energy Resources in a Blockchain Ecosystem

Bao

et al. 2022

IEEE Access

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Aggregators can be effective in organizing distributed energy resources (DERs) for electricity markets and power systems. The recent development of blockchain and peer-to-peer (P2P) networks provides a new ecosystem for aggregating DERs. Initial studies have mainly used off-the-shelf consensuses, which may struggle to balance node sizes and computational intensities. Moreover, the dynamics of DERs changing their selection among multiple aggregators over time are rarely considered in most related literature. This freedom of selection, which is encouraged by the electricity market, can be better activated by a blockchain. In this study, a game-dynamic-based selection framework for multiple aggregators of DERs is proposed in a decentralized blockchain ecosystem. First, a proof-of-dual-credibility (Po2C) protocol is established so that DERs in such an aggregator can reach consensus. At the same time, for one DER node, both an unavoidable objective credit and a malicious subjective credit constitute its credibility with different weights. Then, a function with triple payoffs motivates DERs in terms of both the physical characteristics of being power supply devices and P2P nodes, the latter including consensus winning and data propagation. Third, the selection game of DERs among aggregators is modeled as an evolutionary game under replicator dynamics to find equilibrium. Numerical simulations with two and four aggregators show general stability in the selection game of DERs. Performance achieved with different consensuses and incentives are compared as well. The framework shows its great potential to organize DERs in a decentralized but aggregated mechanism in open electricity markets.INDEX TERMS aggregation, consensus protocol, distributed generator, equilibrium, game dynamics, peerto-peer network

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Business cases of aggregated flexibilities in multiple electricity markets in a European market design

Cited by 25 publications

References 4 publications

Extended Residential Power Management Interface for Flexibility Communication and Uncertainty Reduction for Flexibility System Operators

Extended Residential Power Management Interface for Flexibility Communication and Uncertainty Reduction for Flexibility System Operators

Multi-market demand response from pump-controlled open canal systems: an economic MPC approach to pump-scheduling

Selection Game for Consensus-Based Decentralized Aggregators of Distributed Energy Resources in a Blockchain Ecosystem

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