Optimal supply and demand bidding strategy for an aggregator of small prosumers

This paper addresses the problem faced by an aggregator of small prosumers, when participating in the energy market. The aggregator exploits the flexibility of prosumers’ appliances, in order to reduce its market net costs. Two optimization procedures are proposed. A two-stage stochastic optimization model to support the aggregator in the definition of demand and supply bids. The aim is to minimize the net cost of the aggregator buying and...