In a groundbreaking study published in the journal ‘Energies’, researchers have unveiled a new bidding strategy for prosumer aggregators in distribution markets, potentially reshaping how small-scale energy producers participate in electricity trading. The lead author, Chunyi Wang from the State Grid Shandong Electric Power Company in Jinan, China, emphasizes the transformative potential of this research for the energy sector.
As the energy landscape evolves, the integration of distributed generation, particularly through photovoltaic (PV) systems paired with energy storage solutions (ESS), has become increasingly prevalent. However, many prosumer aggregators—entities that manage these small-scale resources—struggle to compete in the market due to their limited capacity. Wang explains, “By forming alliances, these aggregators can pool their resources, enhancing their market competitiveness and ultimately driving higher profits.”
The study introduces a bilevel bidding model that facilitates collaboration among prosumer aggregators, allowing them to present a unified front in market transactions. The upper level of the model focuses on the strategic decision-making of the aggregators, while the lower level addresses the market-clearing process. This dual approach not only streamlines operations but also ensures that the benefits derived from market participation are equitably shared among alliance members.
Crucially, the research employs an improved version of the diagonalization algorithm (DA) to optimize the bidding process. This enhancement reduces the number of iterations required to reach market equilibrium, cutting down computation time by an impressive 80%. Wang notes, “Our improved algorithm allows for a more efficient bidding process, enabling aggregators to respond swiftly to market dynamics.”
The implications of this research extend far beyond theoretical models. In practical case studies, the strategy demonstrated a 7.3% increase in total revenue for participating aggregators. Additionally, the formation of alliances resulted in a significant reduction in curtailed solar energy, with one example showing a 28% decrease. This not only maximizes resource utilization but also contributes to a more sustainable energy ecosystem.
This innovative approach to cooperative bidding could serve as a blueprint for future developments in the energy sector, particularly as the market continues to evolve. As prosumer aggregators become more organized and strategic, their influence on market dynamics is likely to grow, challenging traditional energy providers and reshaping competitive landscapes.
The study highlights the importance of equitable profit distribution among alliance members, utilizing an improved Shapley value based on the PV self-consumption rate. This not only addresses the needs of aggregators managing higher proportions of distributed ESSs but also fosters a collaborative environment essential for long-term stability.
As the energy sector moves toward greater decentralization, the findings from this research could pave the way for more sophisticated market strategies and collaborative frameworks. The potential for enhanced profitability and resource efficiency positions prosumer aggregator alliances as key players in the future of energy trading.
For more insights into this pivotal research, you can refer to State Grid Shandong Electric Power Company, where the lead author Chunyi Wang is affiliated.
