The Impact of Aggregating Distributed Energy Resources on Electricity Market Efficiency

Khaled Alshehri, Mariola Ndrio, Subhonmesh Bose, Tamer Başar

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Distributed energy resources (DERs) have too small supply capacities to directly participate in a wholesale electricity market. In this paper, we study the efficiency of the market, when a collection of DERs are represented by a profit-maximizing aggregator. We model the interaction between the aggregator and the DER owners as a Stackelberg game. Our analysis characterizes the price of aggregation - the efficiency loss due to the strategic incentives of the aggregator in representing a collection of DERs as opposed to direct DER participation in the wholesale market.

Original languageEnglish (US)
Title of host publication2019 53rd Annual Conference on Information Sciences and Systems, CISS 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728111513
DOIs
StatePublished - Apr 16 2019
Event53rd Annual Conference on Information Sciences and Systems, CISS 2019 - Baltimore, United States
Duration: Mar 20 2019Mar 22 2019

Publication series

Name2019 53rd Annual Conference on Information Sciences and Systems, CISS 2019

Conference

Conference53rd Annual Conference on Information Sciences and Systems, CISS 2019
Country/TerritoryUnited States
CityBaltimore
Period3/20/193/22/19

ASJC Scopus subject areas

  • Information Systems

Fingerprint

Dive into the research topics of 'The Impact of Aggregating Distributed Energy Resources on Electricity Market Efficiency'. Together they form a unique fingerprint.

Cite this