Demand-Side Participation via Economic Bidding of Responsive Loads and Local Energy Resources

Abstract

The active participation of demand response (DR) resources into the wholesale market price formation and load dispatch process has the potential to stimulate demand-side flexibility. However, it is challenging for a market entity to utilize the DR resources for practical use. This is because day-ahead wholesale market-clearing prices are uncertain, and DR resources are heterogeneous. Furthermore, DR participation may lead to violations of the distribution system's operational constraints. In this article, we propose an approach for an aggregator/load-serving entity (LSE) to profitably bid aggregated DR resources into the day-ahead wholesale market. The LSE requires an optimal bidding strategy that reflects the price elasticity of the aggregated retail loads to participate in the wholesale market operations. In the proposed approach, the LSE executes load curtailment and load shifting contracts with DR resources, where DR resources are remunerated for their participation at pre-contracted incentive prices. Then, the LSE aggregates the DR flexibility and optimally bids it in the day-ahead wholesale market. The proposed approach is validated using the IEEE-123-bus test system. It is demonstrated that the LSE can successfully generate economic bids for its participation in the day-ahead market by optimal management of DR resources and without violating the network's operating constraints.

Informed Prosumer Aggregator Bidding Strategy via Incorporating Distribution Grid Outage Risk Predictions

“…Uncertainty in renewable generation was addressed in [23] by implementing DR programs and EV aggregators via a coordinated stochastic decision-making model. In [24], the aggregator utilized the agents' load curtailment and load shifting abilities to participate in DR programs, and the agents were compensated based on pre-contracted incentive programs. In [25], a spatiotemporal transfer characteristic-based bidding strategy for participation in a DR program was developed.…”

Modelling the Interdependence of Multiple Electricity Markets in the Distribution System Aggregator Bidding

“…In [6], a stochastic decision-making model of a DSA's bidding strategy for the DA market is developed, coordinating renewable resources, DR, and Electric Vehicles (EVs). Taking into account the price elasticity of the retail loads, [7] proposes a bidding strategy for the DSA of DR resources in the DA wholesale market. The bidding strategy of a small-scale microgrids aggregator for participation in the RT balancing market is introduced in [8]; their proposed model aims to achieve maximum returns while mitigating the effects of uncertainties.…”

Proactive demand-side participation: Centralized versus transactive demand-Supply coordination

“…A similar flexible demand-bid curve can be generated at the building-level by leveraging the flexibility of heating and cooling loads other than the HVAC system used in this paper. Likewise, other time-shiftable loads can be integrated for the DR with additional constraints regarding their scheduling time [41]. Thus, other flexible loads can be easily integrated with the proposed approach to generate the price-sensitive demand curve.…”