Aggregated Operation Scheme for Distributed Photovoltaic and Energy Storage System Enabling Multi-Service Provision

The aggregated entity formed by the distributed photovoltaic (DPV) and energy storage system has the capability to offer multiple services in the electricity markets, reaping the advantages of both energy arbitrage and frequency regulation. This article focuses on developing a bidding strategy and operation plan for an aggregated entity from a profit pursuit perspective. We propose a multi-stage stochastic programming optimization model that divides the original problem into three stages, allowing for feasible and more realistic decision-making while maintaining the relationships among decisions. The proposed model includes a new multi-service portfolio that balances the profit of the two markets and accounts for uncertainties in market prices, DPV output, and regulation signals. To motivate collaboration among stakeholders, we also develop a profit allocation model rooted in the principles of Nash bargaining theory. This model serves as a compelling incentive for all parties involved, encouraging mutually beneficial cooperation. Finally, a numerical case study demonstrates the validity of the proposed models.