Abstract: With the new round of power market in-depth reform, we propose an concept of large-scale aggregation management and establish an optimization model for distributed energy storage aggregation providers to participate in power grid peaking scheduling in the form of bidding. In the day-to-day scheduling, the aggregation providers participate in the bidding by predicting the characteristics of distributed energy storage system behavior according to the next-day peaking demand announced by the power trading center; the power trading center optimizes the dispatch plan with a goal of minimizing the peaking scheduling cost. In the real-time scheduling, the aggregation providers optimize the charge and discharge outputs with a goal of maximizing its own interests considering the energy storage system characteristics of the previous prediction error and losses so that the aggregation providers could profit from the market electricity price while satisfying the previous successful bid. Simulation examples show that distributed energy storage aggregation providers participating in the grid dispatching could reduce the cost of peak shaving scheduling and achieve the effect of peak shaving in the form of bidding. The loss cost of energy storage system is the key factor affecting the outputs of charge and discharge.

Key words: electricity market, distributed energy storage, aggregation provider, peak shaving, scheduling model