A Bidding Algorithm for the Joint Participation of Distributed Energy Resources in Day-Ahead Energy and Mfrr Markets

This paper provides an optimization algorithm for the joint participation of an aggregator of flexible demand in the dayahead (DA) energy and manual frequency response (mFRR) markets. The algorithm, which is based on a mixed integer linear (MILP) optimization problem, defines the bids to be sent to the aforementioned markets, with the aim of minimizing the net cost for buying and selling energy in the DA market while maximizing the benefits from its participation in the mFRR market. This combined bidding strategy helps the aggregator to perform a better schedule of its flexibility resources, thus improving its revenue opportunities. The proposed bidding algorithm is tested in a realistic simulation case study based on the Portuguese pilot within the ELEXIA project comprising three office climatization systems and a photovoltaic generator. Results demonstrate the applicability of the developed algorithm to estimate the available flexibility and define the optimal multi-market bidding strategy.