Generalize the Bidding Strategy of Distributed Energy Resources for the Balancing Market

In recent years, there has been an emerging trend towards aggregation businesses in the distributed energy resources (DERs) that consumers utilise, where aggregators bundle their balancing power values for the balancing market. Therefore, this study proposes a three-stage optimization market bidding strategy for DERs. It incorporates a bidding strategy that considers the balancing market's characteristics and the conventional function of supplying electricity to consumers. The proposed method comprises three optimization stages. First, a bidding plan is devised. Second, a plan is formulated accounting for the execution results. Third, the plan is modified based on the output command value. The approach incorporates formulations accommodating DER activation and availability costs alongside simultaneous optimization by an energy service provider and aggregator. The effectiveness is evaluated based on market transaction simulations utilising real market data.