Bidding Mechanism of Aggregated Buildings with Various Flexible Loads Participating in Demand Response Market

With the rapid growth of renewable energy resources, the regulation potential on the demand side is being harnessed to address the challenges of supply-demand balance. Buildings consume a significant proportion of electricity and possess various flexible loads, thereby they are regarded as the important participants in the demand response market. The market aims to determine appropriate regulation capacity and clearing price under different scenarios. However, the regulation costs of buildings vary with regulation capacity, and they need to be aggregated to satisfy the participation requirements, so an efficient bidding mechanism should be developed to coordinate the interests of both aggregators and buildings. At first, the piecewise model on regulation costs and regulation capacities is developed to indicate the variable relationships. Then, the bidding mechanism for buildings is proposed to generate the capacity-price curves, which can guarantee the regulation profits by regarding the maximum value as the price at different intervals. On this basis, the bidding mechanism for aggregators is proposed to formulate the capacity-price profiles, followed by the profits allocation method. Not only the aggregation complexity with lots of couples of capacities and prices is simplified effectively, but also can adjust profits between aggregators and buildings in accordance with practical situations. Lastly, the case study is conducted to prove the effectiveness of the proposed bidding mechanism, and the profits allocation method is also discussed to analyze its contribution to regulation performance.