Optimization of decentralized energy storage flexibility for frequency reserves

Abstract

This paper presents a cost optimization scheme for an electricity aggregator. The aggregator schedules the charging of the energy storages of its aggregated group of consumers to minimize the hourly spot market costs, while simultaneously maximizing its potential for participation in the reserve market. The optimization is formulated as a distributed iterative algorithm and its performance on the day-ahead and regulating power markets are evaluated based on simulations using actual market data. It was shown that increasing the consumption flexibility increased the overall profits markedly, while increasing their variance, up to a point.