Real-time pricing for aggregates energy resources in the Italian energy market

Over the last decade, the architecture of the energy market has radically changed. In many countries end-users are now able to directly access the market, which has given rise to the question of how they can actively participate in that market. End-users can comprise a critical mass through aggregat...

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Bibliographic Details
Published in:Energy (Oxford) 2015-07, Vol.87, p.251-258
Main Authors: Favuzza, S., Galioto, G., Ippolito, M.G., Massaro, F., Milazzo, F., Pecoraro, G., Riva Sanseverino, E., Telaretti, E.
Format: Article
Language:English
Subjects:
Agglomeration
Aggregates
Computer simulation
Economics
End users
Loads aggregation
Markets
Optimization
Real time
Real time pricing
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Summary:Over the last decade, the architecture of the energy market has radically changed. In many countries end-users are now able to directly access the market, which has given rise to the question of how they can actively participate in that market. End-users can comprise a critical mass through aggregation that is carried out by a third party – to wit the “loads aggregator.” This paper proposes a new framework for generating feasible real-time price curves for those end-users in a demand-response management process. The underlying algorithm generates output curves as the solution to a constrained optimization problem whose objective function is the aggregator's economic benefit. A case simulation study of the Italian market, with various parameter options, illustrates the procedure. •Management of customer storage systems in presence of dynamic electricity prices.•The strategy exploits a load-shifting operation ensuring a profit for the end-user.•The algorithm gives curves as solution of a constrained optimization problem.•The objective function maximizes the economic benefit of aggregator and end users.
ISSN:0360-5442
DOI:10.1016/j.energy.2015.04.105