Peak Regulation Market Design for End-users in the Presence of Load Aggregators

The rapid development of renewable energy industry in China has brought great demand for peak-regulation resources. As the flexibility of traditional thermal power plants are gradually exhausted, end-users with controllable devices, can be regarded as a kind of the promising flexible resources. The major problem that hinders distributed end-users from efficiently responding to the power system is the lack of the demand-side peak-regulation market mechanism. To this end, a peak-regulation market framework for demand-side in the presence of load aggregator (LA) is proposed in this paper, where LAs are responsible to integrate the flexible capacity of small-scale end-users to participate in the ancillary market. Firstly, LAs estimate the responsive capacity and the responsive cost of their signed end-users. Then, LAs will bid by their marginal utility prices at the proposed market platform operated by the system operator. Once the bidding is done, the system operator will clear the market and announce the bidding results. Meanwhile, each LA can guide the signed end-users by dynamic incentive price to change their load patterns. In addition, this paper further provides the market implementation steps, covering bidding, clearing and settlement. The simulation results show the proposed market model can offer an efficient market framework to integrate the flexible resources of distributed end-users for peak regulation to maximum consume the renewable energy.