I co-authored a preprint on “Wholesale Market Participation of DERA: Competitive DER Aggregation.”
The manuscript explores a profit-seeking distributed energy resource aggregator (DERA) model that participates in wholesale markets under distribution network constraints. It proposes a competitive framework maximizing DERA profit while ensuring customers retain at least the same surplus and energy costs as under regulated retail tariffs. The DERA operates as virtual storage, optimizing generation offers and consumption bids, and derives bid curves for network access, assessing profitability against retail tariffs. The study demonstrates that this model achieves welfare-maximizing outcomes comparable to direct customer market participation. Numerical analyses compare the DERA with existing methods, evaluating customer surplus and DERA profit, while empirically assessing the long-run equilibrium viability of DERAs and the short-run impacts of DER adoption and network access.
