IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v182y2016icp340-357.html
   My bibliography  Save this article

Optimal planning and operation of aggregated distributed energy resources with market participation

Author

Listed:
  • Calvillo, C.F.
  • Sánchez-Miralles, A.
  • Villar, J.
  • Martín, F.

Abstract

This paper analyzes the optimal planning and operation of aggregated distributed energy resources (DER) with participation in the electricity market. Aggregators manage their portfolio of resources in order to obtain the maximum benefit from the grid, while participating in the day-ahead wholesale electricity market. The goal of this paper is to propose a model for aggregated DER systems planning, considering its participation in the electricity market and its impact on the market price. The results are the optimal planning and management of DER systems, and the appropriate energy transactions for the aggregator in the wholesale day-ahead market according to the size of its aggregated resources. A price-maker approach based on representing the market competitors with residual demand curves is followed, and the impact on the price is assessed to help in the decision of using price-maker or price-taker approaches depending on the size of the aggregated resources. A deterministic programming problem with two case studies (the average scenario and the most likely scenario from the stochastic ones), and a stochastic one with a case study to account for the market uncertainty are described. For both models, market scenarios have been built from historical data of the Spanish system.

Suggested Citation

  • Calvillo, C.F. & Sánchez-Miralles, A. & Villar, J. & Martín, F., 2016. "Optimal planning and operation of aggregated distributed energy resources with market participation," Applied Energy, Elsevier, vol. 182(C), pages 340-357.
    • Handle: RePEc:eee:appene:v:182:y:2016:i:c:p:340-357
    DOI: 10.1016/j.apenergy.2016.08.117
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030626191631217X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2016.08.117?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mahmoudi, Nadali & Saha, Tapan K. & Eghbal, Mehdi, 2014. "Modelling demand response aggregator behavior in wind power offering strategies," Applied Energy, Elsevier, vol. 133(C), pages 347-355.
    2. Muttaqi, K.M. & Le, An D.T. & Aghaei, J. & Mahboubi-Moghaddam, E. & Negnevitsky, M. & Ledwich, G., 2016. "Optimizing distributed generation parameters through economic feasibility assessment," Applied Energy, Elsevier, vol. 165(C), pages 893-903.
    3. Cossent, Rafael & Gómez, Tomás & Frías, Pablo, 2009. "Towards a future with large penetration of distributed generation: Is the current regulation of electricity distribution ready? Regulatory recommendations under a European perspective," Energy Policy, Elsevier, vol. 37(3), pages 1145-1155, March.
    4. Martin-Martínez, F. & Sánchez-Miralles, A. & Rivier, M., 2016. "A literature review of Microgrids: A functional layer based classification," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1133-1153.
    5. Shafiee, Soroush & Zamani-Dehkordi, Payam & Zareipour, Hamidreza & Knight, Andrew M., 2016. "Economic assessment of a price-maker energy storage facility in the Alberta electricity market," Energy, Elsevier, vol. 111(C), pages 537-547.
    6. Sousa, Jorge A.M. & Teixeira, Fábio & Faias, Sérgio, 2014. "Impact of a price-maker pumped storage hydro unit on the integration of wind energy in power systems," Energy, Elsevier, vol. 69(C), pages 3-11.
    7. Calvillo, C.F. & Sánchez-Miralles, A. & Villar, J., 2015. "Assessing low voltage network constraints in distributed energy resources planning," Energy, Elsevier, vol. 84(C), pages 783-793.
    8. Zou, Peng & Chen, Qixin & Xia, Qing & He, Guannan & Kang, Chongqing & Conejo, Antonio J., 2016. "Pool equilibria including strategic storage," Applied Energy, Elsevier, vol. 177(C), pages 260-270.
    9. Pandžić, Hrvoje & Morales, Juan M. & Conejo, Antonio J. & Kuzle, Igor, 2013. "Offering model for a virtual power plant based on stochastic programming," Applied Energy, Elsevier, vol. 105(C), pages 282-292.
    10. Cardoso, G. & Stadler, M. & Bozchalui, M.C. & Sharma, R. & Marnay, C. & Barbosa-Póvoa, A. & Ferrão, P., 2014. "Optimal investment and scheduling of distributed energy resources with uncertainty in electric vehicle driving schedules," Energy, Elsevier, vol. 64(C), pages 17-30.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Möbius, Thomas & Riepin, Iegor & Müsgens, Felix & van der Weijde, Adriaan H., 2023. "Risk aversion and flexibility options in electricity markets," Energy Economics, Elsevier, vol. 126(C).
    2. Zhigang Duan & Yamin Yan & Xiaohan Yan & Qi Liao & Wan Zhang & Yongtu Liang & Tianqi Xia, 2017. "An MILP Method for Design of Distributed Energy Resource System Considering Stochastic Energy Supply and Demand," Energies, MDPI, vol. 11(1), pages 1-23, December.
    3. Bohlayer, Markus & Zöttl, Gregor, 2018. "Low-grade waste heat integration in distributed energy generation systems - An economic optimization approach," Energy, Elsevier, vol. 159(C), pages 327-343.
    4. Tao Chen & Qais Alsafasfeh & Hajir Pourbabak & Wencong Su, 2017. "The Next-Generation U.S. Retail Electricity Market with Customers and Prosumers—A Bibliographical Survey," Energies, MDPI, vol. 11(1), pages 1-17, December.
    5. Bloemendal, Martin & Jaxa-Rozen, Marc & Olsthoorn, Theo, 2018. "Methods for planning of ATES systems," Applied Energy, Elsevier, vol. 216(C), pages 534-557.
    6. Lemmer, Andreas & Krümpel, Johannes, 2017. "Demand-driven biogas production in anaerobic filters," Applied Energy, Elsevier, vol. 185(P1), pages 885-894.
    7. Pearson, Simon & Wellnitz, Sonja & Crespo del Granado, Pedro & Hashemipour, Naser, 2022. "The value of TSO-DSO coordination in re-dispatch with flexible decentralized energy sources: Insights for Germany in 2030," Applied Energy, Elsevier, vol. 326(C).
    8. Zhou, Yue & Wu, Jianzhong & Long, Chao, 2018. "Evaluation of peer-to-peer energy sharing mechanisms based on a multiagent simulation framework," Applied Energy, Elsevier, vol. 222(C), pages 993-1022.
    9. Castagneto Gissey, Giorgio & Subkhankulova, Dina & Dodds, Paul E. & Barrett, Mark, 2019. "Value of energy storage aggregation to the electricity system," Energy Policy, Elsevier, vol. 128(C), pages 685-696.
    10. Javier Rodríguez-García & David Ribó-Pérez & Carlos Álvarez-Bel & Elisa Peñalvo-López, 2019. "Novel Conceptual Architecture for the Next-Generation Electricity Markets to Enhance a Large Penetration of Renewable Energy," Energies, MDPI, vol. 12(13), pages 1-23, July.
    11. Chakraborty, Shantanu & Baarslag, Tim & Kaisers, Michael, 2020. "Automated peer-to-peer negotiation for energy contract settlements in residential cooperatives," Applied Energy, Elsevier, vol. 259(C).
    12. Anvari-Moghaddam, Amjad & Rahimi-Kian, Ashkan & Mirian, Maryam S. & Guerrero, Josep M., 2017. "A multi-agent based energy management solution for integrated buildings and microgrid system," Applied Energy, Elsevier, vol. 203(C), pages 41-56.
    13. Haddadian, Hossein & Noroozian, Reza, 2017. "Multi-microgrids approach for design and operation of future distribution networks based on novel technical indices," Applied Energy, Elsevier, vol. 185(P1), pages 650-663.
    14. Shan Shan & Siliang Yang & Victor Becerra & Jiamei Deng & Honglei Li, 2023. "A Case Study of Existing Peer-to-Peer Energy Trading Platforms: Calling for Integrated Platform Features," Sustainability, MDPI, vol. 15(23), pages 1-22, November.
    15. Regina Hemm & Ksenia Poplavskaya & Stefan Strömer & Miriam Schwebler & Bernadette Fina & Fabian Leimgruber, 2022. "What Incentives Are Required for Renewables to Provide Redispatch Services? A Simulation in a Multi-Market Setting," Energies, MDPI, vol. 15(15), pages 1-21, August.
    16. Rodríguez-Vilches, Rubén & Martín-Martínez, Francisco & Sánchez-Miralles, Álvaro & Gutiérrez de la Cámara, Javier Rodrigo & Muñoz Delgado, Sergio, 2024. "Methodology to assess prosumer participation in European electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    17. Jingpeng Yue & Zhijian Hu & Amjad Anvari-Moghaddam & Josep M. Guerrero, 2019. "A Multi-Market-Driven Approach to Energy Scheduling of Smart Microgrids in Distribution Networks," Sustainability, MDPI, vol. 11(2), pages 1-16, January.
    18. Binod Prasad Koirala & José Pablo Chaves Ávila & Tomás Gómez & Rudi A. Hakvoort & Paulien M. Herder, 2016. "Local Alternative for Energy Supply: Performance Assessment of Integrated Community Energy Systems," Energies, MDPI, vol. 9(12), pages 1-24, November.
    19. Iria, José & Soares, Filipe & Matos, Manuel, 2019. "Optimal bidding strategy for an aggregator of prosumers in energy and secondary reserve markets," Applied Energy, Elsevier, vol. 238(C), pages 1361-1372.
    20. Burger, Scott & Chaves-Ávila, Jose Pablo & Batlle, Carlos & Pérez-Arriaga, Ignacio J., 2017. "A review of the value of aggregators in electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 395-405.
    21. Zhang, Shenxi & Cheng, Haozhong & Wang, Dan & Zhang, Libo & Li, Furong & Yao, Liangzhong, 2018. "Distributed generation planning in active distribution network considering demand side management and network reconfiguration," Applied Energy, Elsevier, vol. 228(C), pages 1921-1936.
    22. Alqahtani, Mohammed & Hu, Mengqi, 2020. "Integrated energy scheduling and routing for a network of mobile prosumers," Energy, Elsevier, vol. 200(C).
    23. Adam Lesniak & Dawid Chudy & Rafal Dzikowski, 2020. "Modelling of Distributed Resource Aggregation for the Provision of Ancillary Services," Energies, MDPI, vol. 13(18), pages 1-16, September.
    24. Pedro Faria & João Spínola & Zita Vale, 2018. "Reschedule of Distributed Energy Resources by an Aggregator for Market Participation," Energies, MDPI, vol. 11(4), pages 1-15, March.
    25. Gomes, I.L.R. & Melicio, R. & Mendes, V.M.F. & Pousinho, H.M.I., 2019. "Decision making for sustainable aggregation of clean energy in day-ahead market: Uncertainty and risk," Renewable Energy, Elsevier, vol. 133(C), pages 692-702.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marija Miletić & Hrvoje Pandžić & Dechang Yang, 2020. "Operating and Investment Models for Energy Storage Systems," Energies, MDPI, vol. 13(18), pages 1-33, September.
    2. Martín-Martínez, F. & Sánchez-Miralles, A. & Rivier, M. & Calvillo, C.F., 2017. "Centralized vs distributed generation. A model to assess the relevance of some thermal and electric factors. Application to the Spanish case study," Energy, Elsevier, vol. 134(C), pages 850-863.
    3. Huang, Qisheng & Xu, Yunjian & Courcoubetis, Costas, 2020. "Stackelberg competition between merchant and regulated storage investment in wholesale electricity markets," Applied Energy, Elsevier, vol. 264(C).
    4. Nosratabadi, Seyyed Mostafa & Hooshmand, Rahmat-Allah & Gholipour, Eskandar, 2017. "A comprehensive review on microgrid and virtual power plant concepts employed for distributed energy resources scheduling in power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 341-363.
    5. Christos N. Dimitriadis & Evangelos G. Tsimopoulos & Michael C. Georgiadis, 2021. "A Review on the Complementarity Modelling in Competitive Electricity Markets," Energies, MDPI, vol. 14(21), pages 1-27, November.
    6. Gomes, I.L.R. & Melicio, R. & Mendes, V.M.F. & Pousinho, H.M.I., 2019. "Decision making for sustainable aggregation of clean energy in day-ahead market: Uncertainty and risk," Renewable Energy, Elsevier, vol. 133(C), pages 692-702.
    7. Dimitriadis, Christos N. & Tsimopoulos, Evangelos G. & Georgiadis, Michael C., 2022. "Strategic bidding of an energy storage agent in a joint energy and reserve market under stochastic generation," Energy, Elsevier, vol. 242(C).
    8. Barbry, Adrien & Anjos, Miguel F. & Delage, Erick & Schell, Kristen R., 2019. "Robust self-scheduling of a price-maker energy storage facility in the New York electricity market," Energy Economics, Elsevier, vol. 78(C), pages 629-646.
    9. Alqahtani, Mohammed & Hu, Mengqi, 2022. "Dynamic energy scheduling and routing of multiple electric vehicles using deep reinforcement learning," Energy, Elsevier, vol. 244(PA).
    10. Lucio Ciabattoni & Stefano Cardarelli & Marialaura Di Somma & Giorgio Graditi & Gabriele Comodi, 2021. "A Novel Open-Source Simulator Of Electric Vehicles in a Demand-Side Management Scenario," Energies, MDPI, vol. 14(6), pages 1-16, March.
    11. Hee-Kwan Shin & Jae-Min Cho & Eul-Bum Lee, 2019. "Electrical Power Characteristics and Economic Analysis of Distributed Generation System Using Renewable Energy: Applied to Iron and Steel Plants," Sustainability, MDPI, vol. 11(22), pages 1-27, November.
    12. Aryani, Morteza & Ahmadian, Mohammad & Sheikh-El-Eslami, Mohammad-Kazem, 2020. "Designing a regulatory tool for coordinated investment in renewable and conventional generation capacities considering market equilibria," Applied Energy, Elsevier, vol. 279(C).
    13. Kuang, Yanqing & Chen, Yang & Hu, Mengqi & Yang, Dong, 2017. "Influence analysis of driver behavior and building category on economic performance of electric vehicle to grid and building integration," Applied Energy, Elsevier, vol. 207(C), pages 427-437.
    14. Gonçalves Rigueira Pinheiro Castro, Pedro Henrique & Filho, Delly Oliveira & Rosa, André Pereira & Navas Gracia, Luis Manuel & Almeida Silva, Thais Cristina, 2024. "Comparison of externalities of biogas and photovoltaic solar energy for energy planning," Energy Policy, Elsevier, vol. 188(C).
    15. Cambini, Carlo & Soroush, Golnoush, 2019. "Designing grid tariffs in the presence of distributed generation," Utilities Policy, Elsevier, vol. 61(C).
    16. Abdmouleh, Zeineb & Gastli, Adel & Ben-Brahim, Lazhar & Haouari, Mohamed & Al-Emadi, Nasser Ahmed, 2017. "Review of optimization techniques applied for the integration of distributed generation from renewable energy sources," Renewable Energy, Elsevier, vol. 113(C), pages 266-280.
    17. Pfeifer, Antun & Feijoo, Felipe & Duić, Neven, 2023. "Fast energy transition as a best strategy for all? The nash equilibrium of long-term energy planning strategies in coupled power markets," Energy, Elsevier, vol. 284(C).
    18. Xiaolin Ayón & María Ángeles Moreno & Julio Usaola, 2017. "Aggregators’ Optimal Bidding Strategy in Sequential Day-Ahead and Intraday Electricity Spot Markets," Energies, MDPI, vol. 10(4), pages 1-20, April.
    19. Sun, Shitong & Kazemi-Razi, S. Mahdi & Kaigutha, Lisa G. & Marzband, Mousa & Nafisi, Hamed & Al-Sumaiti, Ameena Saad, 2022. "Day-ahead offering strategy in the market for concentrating solar power considering thermoelectric decoupling by a compressed air energy storage," Applied Energy, Elsevier, vol. 305(C).
    20. Streimikiene, Dalia & Baležentis, Tomas, 2013. "Multi-criteria assessment of small scale CHP technologies in buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 183-189.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:182:y:2016:i:c:p:340-357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.