TY - GEN
T1 - The Impact of Aggregating Distributed Energy Resources on Electricity Market Efficiency
AU - Alshehri, Khaled
AU - Ndrio, Mariola
AU - Bose, Subhonmesh
AU - Başar, Tamer
N1 - Funding Information:
We thank Feng Zhao and the rest of the market design team at the Business Architecture and Technology Department at ISO New England for the helpful and insightful discussions. The work was partially supported by the Power System Engineering Research Center (PSERC).
Publisher Copyright:
© 2019 IEEE.
PY - 2019/4/16
Y1 - 2019/4/16
N2 - 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.
AB - 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.
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U2 - 10.1109/CISS.2019.8692823
DO - 10.1109/CISS.2019.8692823
M3 - Conference contribution
AN - SCOPUS:85065178321
T3 - 2019 53rd Annual Conference on Information Sciences and Systems, CISS 2019
BT - 2019 53rd Annual Conference on Information Sciences and Systems, CISS 2019
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 53rd Annual Conference on Information Sciences and Systems, CISS 2019
Y2 - 20 March 2019 through 22 March 2019
ER -