Effect of the Minimum Bid Size on the Wholesale Markets

Simone Minniti; Thien An Nguyen-Huu; Trung Thai Tran; Minh-Quan Tran; Phuong Hong Nguyen

doi:10.1109/EEEIC/ICPSEurope57605.2023.10194857

Effect of the Minimum Bid Size on the Wholesale Markets

Simone Minniti
, Thien An Nguyen-Huu
, Trung Thai Tran
, Minh-Quan Tran
, Phuong Hong Nguyen

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

20 Downloads (Pure)

Abstract

Among Distributed Energy Resources (DERs), Electric Vehicles (EVs) are promising resources for flexibility provision. However, the small-scale capacity hinders their possibility to enter the electricity markets. This paper focuses on the understanding of the market barrier for EVs aggregators to participate in the wholesale markets: the minimum allowable bid size. The developed Hybrid Robust/Two-Stage Stochastic optimization model considers three uncertainties, including the availability of the EVs, the day-ahead (DA) market prices, and the imbalance price. Besides, this model gives output for the DA energy program minimizing not only the DA cost of energy procurement but also the imbalance cost realizations after delivery-time. Especially, the temporal correlations are reflected by the Copula model for generating scenarios for the upward and downward imbalance price. The results with different minimum bid sizes (100 kWh, 500 kWh, and 1000 kWh) and different fleet sizes (500 EVs, 1000 EVs) for the public, private, and mixed portfolios are analysed to understand the impacts of the minimum bid size on the business case for small players.

Original language	English
Title of host publication	Proceedings - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023
Editors	Zbigniew Leonowicz
Publisher	Institute of Electrical and Electronics Engineers
Pages	6
Number of pages	1
ISBN (Electronic)	979-8-3503-4743-2
DOIs	https://doi.org/10.1109/EEEIC/ICPSEurope57605.2023.10194857
Publication status	Published - 3 Aug 2023
Event	2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023 - Madrid, Spain Duration: 6 Jun 2023 → 9 Jun 2023

Conference

Conference	2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023
Country/Territory	Spain
City	Madrid
Period	6/06/23 → 9/06/23

Funding

The authors would like to acknowledge the financial support for this work from RVO funded TROEF project (no. MOOI32025) (https://www.troef-energy.nl/), Twining thermal - electrical integrated storage to enable energy hubs (TwinTES project) that is funded by EIRES (no. 10032054), and the FlexiGrid project that is funded by the European Community’s Horizon 2020 Framework Programme under grant agreement (no. 864048) (https://flexigrid.org/).

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Aggregator
Copula model
Electric vehicles
Hybrid Robust/Two-Stage Stochastic optimization
Minimum Bid Size

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10.1109/EEEIC/ICPSEurope57605.2023.10194857

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Cite this

Minniti, S., Nguyen-Huu, T. A., Tran, T. T., Tran, M.-Q., & Nguyen, P. H. (2023). Effect of the Minimum Bid Size on the Wholesale Markets. In Z. Leonowicz (Ed.), Proceedings - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023 (pp. 6). Article 10194857 Institute of Electrical and Electronics Engineers. https://doi.org/10.1109/EEEIC/ICPSEurope57605.2023.10194857

Minniti, Simone ; Nguyen-Huu, Thien An ; Tran, Trung Thai et al. / Effect of the Minimum Bid Size on the Wholesale Markets. Proceedings - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023. editor / Zbigniew Leonowicz. Institute of Electrical and Electronics Engineers, 2023. pp. 6

@inproceedings{5060004e7beb444180ce451326299067,

title = "Effect of the Minimum Bid Size on the Wholesale Markets",

abstract = "Among Distributed Energy Resources (DERs), Electric Vehicles (EVs) are promising resources for flexibility provision. However, the small-scale capacity hinders their possibility to enter the electricity markets. This paper focuses on the understanding of the market barrier for EVs aggregators to participate in the wholesale markets: the minimum allowable bid size. The developed Hybrid Robust/Two-Stage Stochastic optimization model considers three uncertainties, including the availability of the EVs, the day-ahead (DA) market prices, and the imbalance price. Besides, this model gives output for the DA energy program minimizing not only the DA cost of energy procurement but also the imbalance cost realizations after delivery-time. Especially, the temporal correlations are reflected by the Copula model for generating scenarios for the upward and downward imbalance price. The results with different minimum bid sizes (100 kWh, 500 kWh, and 1000 kWh) and different fleet sizes (500 EVs, 1000 EVs) for the public, private, and mixed portfolios are analysed to understand the impacts of the minimum bid size on the business case for small players.",

keywords = "Aggregator, Copula model, Electric vehicles, Hybrid Robust/Two-Stage Stochastic optimization, Minimum Bid Size",

author = "Simone Minniti and Nguyen-Huu, \{Thien An\} and Tran, \{Trung Thai\} and Minh-Quan Tran and Nguyen, \{Phuong Hong\}",

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Minniti, S, Nguyen-Huu, TA, Tran, TT, Tran, M-Q & Nguyen, PH 2023, Effect of the Minimum Bid Size on the Wholesale Markets. in Z Leonowicz (ed.), Proceedings - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023., 10194857, Institute of Electrical and Electronics Engineers, pp. 6, 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023, Madrid, Spain, 6/06/23. https://doi.org/10.1109/EEEIC/ICPSEurope57605.2023.10194857

Effect of the Minimum Bid Size on the Wholesale Markets. / Minniti, Simone; Nguyen-Huu, Thien An; Tran, Trung Thai et al.
Proceedings - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023. ed. / Zbigniew Leonowicz. Institute of Electrical and Electronics Engineers, 2023. p. 6 10194857.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

TY - GEN

T1 - Effect of the Minimum Bid Size on the Wholesale Markets

AU - Minniti, Simone

AU - Nguyen-Huu, Thien An

AU - Tran, Trung Thai

AU - Tran, Minh-Quan

AU - Nguyen, Phuong Hong

PY - 2023/8/3

Y1 - 2023/8/3

N2 - Among Distributed Energy Resources (DERs), Electric Vehicles (EVs) are promising resources for flexibility provision. However, the small-scale capacity hinders their possibility to enter the electricity markets. This paper focuses on the understanding of the market barrier for EVs aggregators to participate in the wholesale markets: the minimum allowable bid size. The developed Hybrid Robust/Two-Stage Stochastic optimization model considers three uncertainties, including the availability of the EVs, the day-ahead (DA) market prices, and the imbalance price. Besides, this model gives output for the DA energy program minimizing not only the DA cost of energy procurement but also the imbalance cost realizations after delivery-time. Especially, the temporal correlations are reflected by the Copula model for generating scenarios for the upward and downward imbalance price. The results with different minimum bid sizes (100 kWh, 500 kWh, and 1000 kWh) and different fleet sizes (500 EVs, 1000 EVs) for the public, private, and mixed portfolios are analysed to understand the impacts of the minimum bid size on the business case for small players.

AB - Among Distributed Energy Resources (DERs), Electric Vehicles (EVs) are promising resources for flexibility provision. However, the small-scale capacity hinders their possibility to enter the electricity markets. This paper focuses on the understanding of the market barrier for EVs aggregators to participate in the wholesale markets: the minimum allowable bid size. The developed Hybrid Robust/Two-Stage Stochastic optimization model considers three uncertainties, including the availability of the EVs, the day-ahead (DA) market prices, and the imbalance price. Besides, this model gives output for the DA energy program minimizing not only the DA cost of energy procurement but also the imbalance cost realizations after delivery-time. Especially, the temporal correlations are reflected by the Copula model for generating scenarios for the upward and downward imbalance price. The results with different minimum bid sizes (100 kWh, 500 kWh, and 1000 kWh) and different fleet sizes (500 EVs, 1000 EVs) for the public, private, and mixed portfolios are analysed to understand the impacts of the minimum bid size on the business case for small players.

KW - Aggregator

KW - Copula model

KW - Electric vehicles

KW - Hybrid Robust/Two-Stage Stochastic optimization

KW - Minimum Bid Size

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DO - 10.1109/EEEIC/ICPSEurope57605.2023.10194857

M3 - Conference contribution

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BT - Proceedings - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023

A2 - Leonowicz, Zbigniew

PB - Institute of Electrical and Electronics Engineers

T2 - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023

Y2 - 6 June 2023 through 9 June 2023

ER -

Minniti S, Nguyen-Huu TA, Tran TT, Tran MQ , Nguyen PH. Effect of the Minimum Bid Size on the Wholesale Markets. In Leonowicz Z, editor, Proceedings - 2023 IEEE International Conference on Environment and Electrical Engineering and 2023 IEEE Industrial and Commercial Power Systems Europe, EEEIC / I and CPS Europe 2023. Institute of Electrical and Electronics Engineers. 2023. p. 6. 10194857 doi: 10.1109/EEEIC/ICPSEurope57605.2023.10194857

Effect of the Minimum Bid Size on the Wholesale Markets

Abstract

Conference

Funding

UN SDGs

Keywords

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