Price-maker optimal planning and operation of Distributed Energy Resources

Abstract

This paper proposes a linear programming problem to find the optimal planning and operation of aggregated distributed energy resources (DER), managed by an aggregator that participates in the day-ahead wholesale electricity market as a price-maker agent. The proposed model analyzes the impact of the size of the aggregated resources and gives the optimal planning and management of DER systems, and the corresponding energy transactions in the wholesale day-ahead market. The results suggest that when the aggregated resources are large enough, DER systems can achieve up to 32 extra economic benefits depending on the market share, compared with a business-as-usual approach (not implementing DER systems).