Bi-Level approach for flexibility provision by prosumers in distribution networks

Abstract

The increasing number of Distributed Energy Resources (DERs) provides new opportunities for increased interactions between prosumers and local distribution companies. Aggregating large numbers of prosumers through Home Energy Management Systems (HEMS) allows for easier control and coordination of these interactions. With the contribution of the dedicated end-users in fulfilling the required flexibility during the day, the network operator can easily handle the power mismatches to avoid fluctuations in the load-generation side. The bi-level optimization allows for a more comprehensive and systematic assessment of flexibility procurement strategies. By considering both the network operator’s objectives and the preferences and capabilities of end-users, this approach enables a more nuanced and informed decision-making process. Hence, this paper presents a bi-level optimization model to examine the potential for several groups of prosumers to offer flexibility services to distribution companies. The model is applied to the IEEE 33 bus test system and solved through distributed optimization techniques. The model considers various DERs, including Battery Energy Storage Systems (BESS). Results show that the groups of aggregated consumers can provide between ±7 to ±29 kW flexibility in each interval, which is significant. Furthermore, the aggregators’ flexibility capacity is closely linked to the demand at each node.