2023/07/05 by Cong Chen, Subhonmesh Bose, Chen, Cong +5
Decision Sciences · Engineering · #Auction Theory and Applications #Electric Power System Optimization #FOS: Electrical engineering #Smart Grid Energy Management #Systems and Control (eess.SY) #electronic engineering #information engineering
paper · pdf · doi:10.48550/arxiv.2307.01999
openalex publication_date 2023/07/05 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Distributed energy resource aggregators (DERAs) must share the distribution network together with the distribution utility in order to participate in the wholesale electricity markets that are operated by independent system operators (ISOs). We propose a forward auction that a distribution system operator (DSO) can utilize to allocate distribution network access limits to DERAs. As long as the DERAs operate within their acquired limits, these limits define operating envelopes that guarantee distribution network security, thus defining a mechanism that requires no real-time intervention from the DSOs for DERAs to participate in the wholesale markets. Our auctions take the form of robust and risk-sensitive markets with bids/offers from DERAs and utility's operational costs. Properties of the proposed auction, e.g., resulting surpluses of DSO and the DERAs, and the auction prices, along with empirical performance studies, are presented.