Optimization for Penalty Cost in Electricity Trading Using Energy Dispatching between Aggregators

Junping Gui, Zheng Liu, Xueting Cheng, Haoran Wen*, Botao Zhou, Yueshuang Bao, He Song

*Corresponding author for this work

Research output: Chapter in Book or Report/Conference proceedingConference Proceedingpeer-review

Abstract

In the future retail electricity market, deviation penalties will be one of the largest challenges faced by energy aggregators, directly impacting their profitability. With the objective of minimizing the penalty cost, an energy deviation optimization method is proposed to optimize the assessed energy deviation amount with a mutual energy dispatching strategy among energy aggregators. The model considers the status of interruptible loads, expected interruption upper limits, interruption quantities, and the transfer of electricity of the aggregators under both day-ahead and real-time scenarios. Simulations conducted with different energy aggregators, representing different load types, demonstrate that the proposed method can effectively reduce energy deviations and associated penalty costs, with an average reduction of 16.6% in total costs compared to that without mutual energy dispatching.

Original languageEnglish
Title of host publication2024 8th International Conference on Smart Grid and Smart Cities, ICSGSC 2024
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages304-308
Number of pages5
ISBN (Electronic)9798350377408
DOIs
Publication statusPublished - 2024
Externally publishedYes
Event8th International Conference on Smart Grid and Smart Cities, ICSGSC 2024 - Shanghai, China
Duration: 25 Oct 202427 Oct 2024

Publication series

Name2024 8th International Conference on Smart Grid and Smart Cities, ICSGSC 2024

Conference

Conference8th International Conference on Smart Grid and Smart Cities, ICSGSC 2024
Country/TerritoryChina
CityShanghai
Period25/10/2427/10/24

Keywords

  • cost optimization
  • electricity trading
  • energy aggregator
  • energy dispatching

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