Optimized Demand Response Bidding in the Wholesale Market under Scenarios of Prices and Temperatures

Abstract

Demand aggregators are new market players that represent a group of consumers in the electricity market. This paper proposes an aggregator model responsible for gathering residential and commercial consumers, which has the role of managing their flexible consumption in the day-ahead electricity market. A methodology to optimize the aggregator's bids is also presented. It optimizes the scheduling of the flexible loads taking simultaneously into account the consumers' preferences and temporal trajectories of forecasted outdoor temperatures and electricity prices. The proposed methodology was tested using a case study with 200 residential and commercial consumers from the Iberian market.