Optimization for Penalty Cost in Electricity Trading Using Energy Dispatching between Aggregators

In the future retail electricity market, deviation penalties will be one of the largest challenges faced by energy aggregators, directly impacting their profitability. With the objective of minimizing the penalty cost, an energy deviation optimization method is proposed to optimize the assessed energy deviation amount with a mutual energy dispatching strategy among energy aggregators. The model considers the status of interruptible loads, expected interruption upper limits, interruption quantities, and the transfer of electricity of the aggregators under both day-ahead and real-time scenarios. Simulations conducted with different energy aggregators, representing different load types, demonstrate that the proposed method can effectively reduce energy deviations and associated penalty costs, with an average reduction of 16.6% in total costs compared to that without mutual energy dispatching.

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Publication Details

Published
2024-10-25
DOI
https://doi.org/10.1109/icsgsc62639.2024.10813828
Primary Topic
Smart Grid Energy Management
Type
article
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Optimization for Penalty Cost in Electricity Trading Using Energy Dispatching between Aggregators

Song He, Botao Zhou, Haoran Wen, Yueshuang Bao et al.
Smart Grid Energy Management
article

Optimization for Penalty Cost in Electricity Trading Using Energy Dispatching between Aggregators

Song He, Botao Zhou, Haoran Wen, Yueshuang Bao, Zheng Liu, Xueting Cheng, Junping Gui
article en

Abstract

In the future retail electricity market, deviation penalties will be one of the largest challenges faced by energy aggregators, directly impacting their profitability. With the objective of minimizing the penalty cost, an energy deviation optimization method is proposed to optimize the assessed energy deviation amount with a mutual energy dispatching strategy among energy aggregators. The model considers the status of interruptible loads, expected interruption upper limits, interruption quantities, and the transfer of electricity of the aggregators under both day-ahead and real-time scenarios. Simulations conducted with different energy aggregators, representing different load types, demonstrate that the proposed method can effectively reduce energy deviations and associated penalty costs, with an average reduction of 16.6% in total costs compared to that without mutual energy dispatching.

State Grid Corporation of China (China) (CN), Changsha University (CN)
Affordable and clean energy
Openalex Percentile: Top 77%
Smart Grid Energy Management
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