Prosumer Integration in Flexibility Markets: A Bid Development and Pricing Model

The impact of renewable energies on the power grid is continuously increasing. Besides the emission-free power generation, the renewable energies often are the cause for congested grids, component failure and costly interventions by the distribution system operators (DSO)and transmission system operators (TSO)in order to maintain grid stability. The scientific community discusses in recent years the usability of distributed energy resources (DER)as flexible devices. However, no approach can be found that actually quantifies the potential flexibility and sets a price to it. The model presented in this paper optimizes the charging operation of an electric vehicle (EV)according to a price signal with a state of the art exhaustive search algorithm. Furthermore, this model offers all possible deviations from the optimal operation as flexibility to a corresponding market platform and sets a price to each offer, which is dependent on the future price level of the energy. With this model, it is possible to offer positive and negative prices for flexibility. The proposed model shows that an exhaustive enumeration algorithm is feasible to calculate flexibility offers, prices and applicable on currently discussed platform models. The example of an EV charging schedule is successfully modelled and described in this paper.