Electricity Market Equilibrium Analysis for Strategic Demand Aggregators: The Value of Demand Flexibility Portfolios' Mix

Alireza Khaksary; Konstantinos Steriotis; Georgios Tsaousoglou; Prodromos Makris; Nikolaos Efthymiopoulos; Emmanouel Varvarigos

doi:10.1109/PowerTech55446.2023.10202916

Electricity Market Equilibrium Analysis for Strategic Demand Aggregators: The Value of Demand Flexibility Portfolios' Mix

Alireza Khaksary, Konstantinos Steriotis, Georgios Tsaousoglou, Prodromos Makris, Nikolaos Efthymiopoulos, Emmanouel Varvarigos

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

Abstract

Tools for energy market equilibrium analysis are important for both market participants as well as policy makers towards finding efficient equilibria that serve the goals of the required energy transition. In this paper, an imperfect electricity market with strategic demand aggregators is modeled as an Equilibrium Problem with Equilibrium Constraints (EPEC). We model several types of distributed flexibility assets and energy resources that can be included in a typical demand flexibility portfolio. We quantify the value of demand flexibility portfolios' mix with respect to demand aggregators' cost and social welfare as a function of time for a typical day-ahead market scenario. The impact of possible future flexibility investments is also demonstrated showing how a strategic aggregator's investment decision affects other competing aggregators' business, too.

Original language	English
Title of host publication	Proceedings of the 2023 IEEE Belgrade PowerTech
Number of pages	6
Publisher	IEEE
Publication date	2023
ISBN (Print)	978-1-6654-8779-5
ISBN (Electronic)	978-1-6654-8778-8
DOIs	https://doi.org/10.1109/PowerTech55446.2023.10202916
Publication status	Published - 2023
Event	2023 IEEE Belgrade PowerTech - Hotel Crowne Plaza, Belgrade, Serbia Duration: 25 Jun 2023 → 29 Jun 2023 Conference number: 15

Conference

Conference	2023 IEEE Belgrade PowerTech
Number	15
Location	Hotel Crowne Plaza
Country/Territory	Serbia
City	Belgrade
Period	25/06/2023 → 29/06/2023

Keywords

Energy flexibility
MPEC
EPEC
Market Equilibrium
Demand aggregator

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1109/PowerTech55446.2023.10202916

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title = "Electricity Market Equilibrium Analysis for Strategic Demand Aggregators: The Value of Demand Flexibility Portfolios' Mix",

abstract = "Tools for energy market equilibrium analysis are important for both market participants as well as policy makers towards finding efficient equilibria that serve the goals of the required energy transition. In this paper, an imperfect electricity market with strategic demand aggregators is modeled as an Equilibrium Problem with Equilibrium Constraints (EPEC). We model several types of distributed flexibility assets and energy resources that can be included in a typical demand flexibility portfolio. We quantify the value of demand flexibility portfolios' mix with respect to demand aggregators' cost and social welfare as a function of time for a typical day-ahead market scenario. The impact of possible future flexibility investments is also demonstrated showing how a strategic aggregator's investment decision affects other competing aggregators' business, too.",

keywords = "Energy flexibility, MPEC, EPEC, Market Equilibrium, Demand aggregator",

author = "Alireza Khaksary and Konstantinos Steriotis and Georgios Tsaousoglou and Prodromos Makris and Nikolaos Efthymiopoulos and Emmanouel Varvarigos",

year = "2023",

doi = "10.1109/PowerTech55446.2023.10202916",

language = "English",

isbn = "978-1-6654-8779-5",

booktitle = "Proceedings of the 2023 IEEE Belgrade PowerTech",

publisher = "IEEE",

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note = "2023 IEEE Belgrade PowerTech ; Conference date: 25-06-2023 Through 29-06-2023",

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Khaksary, A, Steriotis, K, Tsaousoglou, G, Makris, P, Efthymiopoulos, N & Varvarigos, E 2023, Electricity Market Equilibrium Analysis for Strategic Demand Aggregators: The Value of Demand Flexibility Portfolios' Mix. in Proceedings of the 2023 IEEE Belgrade PowerTech. IEEE, 2023 IEEE Belgrade PowerTech, Belgrade, Serbia, 25/06/2023. https://doi.org/10.1109/PowerTech55446.2023.10202916

Electricity Market Equilibrium Analysis for Strategic Demand Aggregators: The Value of Demand Flexibility Portfolios' Mix. / Khaksary, Alireza; Steriotis, Konstantinos; Tsaousoglou, Georgios et al.
Proceedings of the 2023 IEEE Belgrade PowerTech. IEEE, 2023.

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

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T1 - Electricity Market Equilibrium Analysis for Strategic Demand Aggregators

T2 - 2023 IEEE Belgrade PowerTech

AU - Khaksary, Alireza

AU - Steriotis, Konstantinos

AU - Tsaousoglou, Georgios

AU - Makris, Prodromos

AU - Efthymiopoulos, Nikolaos

AU - Varvarigos, Emmanouel

N1 - Conference code: 15

PY - 2023

Y1 - 2023

N2 - Tools for energy market equilibrium analysis are important for both market participants as well as policy makers towards finding efficient equilibria that serve the goals of the required energy transition. In this paper, an imperfect electricity market with strategic demand aggregators is modeled as an Equilibrium Problem with Equilibrium Constraints (EPEC). We model several types of distributed flexibility assets and energy resources that can be included in a typical demand flexibility portfolio. We quantify the value of demand flexibility portfolios' mix with respect to demand aggregators' cost and social welfare as a function of time for a typical day-ahead market scenario. The impact of possible future flexibility investments is also demonstrated showing how a strategic aggregator's investment decision affects other competing aggregators' business, too.

AB - Tools for energy market equilibrium analysis are important for both market participants as well as policy makers towards finding efficient equilibria that serve the goals of the required energy transition. In this paper, an imperfect electricity market with strategic demand aggregators is modeled as an Equilibrium Problem with Equilibrium Constraints (EPEC). We model several types of distributed flexibility assets and energy resources that can be included in a typical demand flexibility portfolio. We quantify the value of demand flexibility portfolios' mix with respect to demand aggregators' cost and social welfare as a function of time for a typical day-ahead market scenario. The impact of possible future flexibility investments is also demonstrated showing how a strategic aggregator's investment decision affects other competing aggregators' business, too.

KW - Energy flexibility

KW - MPEC

KW - EPEC

KW - Market Equilibrium

KW - Demand aggregator

U2 - 10.1109/PowerTech55446.2023.10202916

DO - 10.1109/PowerTech55446.2023.10202916

M3 - Article in proceedings

SN - 978-1-6654-8779-5

BT - Proceedings of the 2023 IEEE Belgrade PowerTech

PB - IEEE

Y2 - 25 June 2023 through 29 June 2023

ER -

Electricity Market Equilibrium Analysis for Strategic Demand Aggregators: The Value of Demand Flexibility Portfolios' Mix

Abstract

Conference

Keywords

UN SDGs

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