Offering Strategy of a Flexibility Aggregator in a Balancing Market Using Asymmetric Block Offers

In order to enable large-scale penetration of renewables with variable generation, new sources of flexibility have to be exploited in the power systems. Allowing asymmetric block offers (including response and rebound blocks) in balancing markets can facilitate the participation of flexibility aggregators and unlock load-shifting flexibility from, e.g., thermostatic loads. In this paper, we formulate an optimal offering strategy for a risk-averse flexibility aggregator participating in such a market. Using a price-taker approach, load flexibility characteristics and balancing market price forecast scenarios are used to find optimal load-shifting offers under uncertainty. The problem is formulated as a stochastic mixed-integer linear program and can be solved with reasonable computational time. This work is taking place in the framework of the real-life demonstration project EcoGrid 2.0, which includes the operation of a balancing market on the island of Bornholm, Denmark. In this context, aggregators will participate in the market by applying the offering strategy optimization tool presented in this paper.