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Optimal Participation of Aggregated Residential Customers in Flexibility Markets

Flexibility markets may play a key role in the operation of future low-carbon power systems as they can help to facilitate the provision of the required flexibility to cope with the intermittency and volatility featured by renewable generation. Within this context, this paper addresses the participation of an aggregator of residential customers in flexibility markets through intelligent management of the flexible home appliances of the customers. In particular, a novel methodology is proposed to maximize the benefits of both, namely the aggregator and its customers. The methodology relies on an efficient method wherein two types of modules are iteratively executed until a win-win solution is achieved. The first module is based on an optimization model which aims to maximize the economic profit earned by an aggregator that offers flexibility provided by its customers in local flexibility markets. On the contrary, the second module consists of a local platform for residential customers, which is in charge of the optimal scheduling of all their flexible appliances. The implantation of the proposed methodology will allow facilitating the participation of aggregators within future flexibility markets and electricity markets. Numerical results demonstrate the benefits and good performance of the developed methodology.