Optimisation for Coalitions Formation Considering the Fairness in Flexibility Market Participation

Ricardo Faia,Zita Vale,Tiago Pinto,Juan Manuel Corchado,Fernando Lezama

doi:10.1051/e3sconf/202123900016

Abstract

This paper proposes a coalitional game-theoretical model for consumers’ flexibility coalition formation, supported by an optimization model based on differential evolution. Traditionally, the participation in conventional electricity markets used to be limited to large producers and consumers. The final end-users contract their energy supply with retailers, since due to the smaller quantity available for trading, they cannot participate in electricity market transactions. Nowadays, the growing concept of local electricity market brings many advantages to the end-users. The flexibility negotiation considering local areas is an important procedure for network operators and it is incorporating a local electricity market opportunity. A coalition formation model to facilitate small players participation in the flexibility market proposed by the network operator is addressed in this work. The inclusion of Shapley value in the proposed model enables finding the best coalition structures considering the fairness of the coalitions in addition to the potential income achieved by the consumers when selling their flexibility. An optimization model based on differential evolution is also proposed as the way to find the optimal coalition structures based on the multi-criteria specifications.

Highlights

Renewable energy sources’ large-scale integration in power and energy systems has been heavily verified in recent years
This paper proposes a coalitional game-theoretical model for consumers’ flexibility coalition formation, supported by an optimization model based on differential evolution
The request that is made considers the flexibility in end-users, which is used by the distribution system operators (DSO) to avoid possible contingencies that can appear during the electrical network operation

Summary

Introduction

Renewable energy sources’ large-scale integration in power and energy systems has been heavily verified in recent years. Several changes in the planning and operation of the power systems have been introduced due the volatility of the distributed renewable sources generators (namely solar and wind sources). The coordination between TSO and DSO is needed in order to capture the great flexibility potential. The end consumers are considered power systems agents with great potential in provide flexibility. TSO was been used the flexibility provided by large utilities in order to adapt the consumption in a certain local to the needs of the electricity network [3]. The DSO is following the same approach but considering the end-users connected to distribution network, namely households, residential buildings, and some small industries [4]

Methods

Results

Conclusion