Optimal Bidding Strategy for a DER aggregator in the Day-Ahead Market in the presence of demand flexibility

Giorgio Graditi, Marialaura Di Somma, Pierluigi Siano

Research output: Contribution to journalArticle

33 Citations (Scopus)


The penetration DER, including distributed generators, storage and DR is growing worldwide, encouraged by environmental policies and decreasing costs. To enable DER local integration, new energy players as aggregators appeared in the electricity markets. This player, acting towards the grid as one entity, can offer new services to the electricity market and the system operator by aggregating flexible DER involving both DR and generation resources. In this paper, an optimization model is provided for participation of a DER aggregator in the day-ahead market in the presence of demand flexibility. This player behaves as an energy aggregator, which manages energy and financial interactions between the market and DER organized in Local Energy Systems (LES), which are in charge to satisfy the multi-energy demand of a set of building clusters with electrical flexible loads. A stochastic mixed-integer linear programming problem is formulated by considering uncertainties of intermittent DER facilities and day-ahead market price, to find the optimal bidding strategies while maximizing the expected aggregator's profit. Numerical results show that the method is efficient in finding the bidding curves in the day-ahead market through the optimal management of flexibility requests sent to clusters, and of DER in LES and interactions among LES.
Original languageEnglish
Pages (from-to)-
JournalIEEE Transactions on Industrial Electronics
Publication statusAccepted/In press - 24 Apr 2018
Externally publishedYes


All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Electrical and Electronic Engineering

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