A Two-Level Trading Strategy for Load Aggregators Considering Grid Flexibility Requirements

To address the challenge of surging flexible demand and limited resources in power systems, a power market bidding mechanism has emerged as a crucial balancing solution. We have developed a two-tiered optimization framework that integrates load aggregators into the trading of demand-side flexibility resources. This model ensures power supply and new energy consumption while minimizing the cost of demand-side flexibility. The upper tier identifies the required flexibility, while the lower tier maximizes the aggregator's revenue by leveraging curtailable and transferable loads, participating in the power market's centralized bidding and clearing process. Simulations with grids heavily integrated with new energy sources demonstrate that our model not only meets flexibility demands but also enhances the profitability of load aggregators. Finally, based on the simulation analysis using grid data with a high proportion of new energy access, the results show that the proposed two-level optimization model can meet the demand for flexibility resources while increasing the revenue of the load aggregator.