Bidding Aggregated Flexibility in European Electricity Auctions

Fuente: arXiv
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Main Authors: Ellemund, Gabriel, Hübner, Thomas, Lété, Quentin, Bracco, Stefano, Fresia, Matteo, Hug, Gabriela
Format: Preprint
Published: 2025
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author Ellemund, Gabriel
Hübner, Thomas
Lété, Quentin
Bracco, Stefano
Fresia, Matteo
Hug, Gabriela
author_facet Ellemund, Gabriel
Hübner, Thomas
Lété, Quentin
Bracco, Stefano
Fresia, Matteo
Hug, Gabriela
contents Bidding flexibility in day-ahead and intraday auctions would enable decentralized flexible resources, such as electric vehicles and heat pumps, to efficiently align their consumption with the intermittent generation of renewable energy. However, because these resources are individually too small to participate in those auctions directly, an aggregator (e.g., a utility) must act on their behalf. This requires aggregating many decentralized resources, which is a computationally challenging task. In this paper, we propose a computationally efficient and highly accurate method that is readily applicable to European day-ahead and intraday auctions. Distinct from existing methods, we aggregate only economically relevant power profiles, identified through price forecasts. The resulting flexibility is then conveyed to the market operator via exclusive groups of block bids. We evaluate our method for a utility serving the Swiss town of Losone, where flexibility from multiple heat pumps distributed across the grid must be aggregated and bid in the Swiss day-ahead auction. Results show that our method aggregates accurately, achieving 98% of the theoretically possible cost savings. This aggregation accuracy remains stable even as the number of heat pumps increases, while computation time grows only linearly, demonstrating strong scalability.
format Preprint
id arxiv_https___arxiv_org_abs_2512_13557
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Bidding Aggregated Flexibility in European Electricity Auctions
Ellemund, Gabriel
Hübner, Thomas
Lété, Quentin
Bracco, Stefano
Fresia, Matteo
Hug, Gabriela
Systems and Control
Bidding flexibility in day-ahead and intraday auctions would enable decentralized flexible resources, such as electric vehicles and heat pumps, to efficiently align their consumption with the intermittent generation of renewable energy. However, because these resources are individually too small to participate in those auctions directly, an aggregator (e.g., a utility) must act on their behalf. This requires aggregating many decentralized resources, which is a computationally challenging task. In this paper, we propose a computationally efficient and highly accurate method that is readily applicable to European day-ahead and intraday auctions. Distinct from existing methods, we aggregate only economically relevant power profiles, identified through price forecasts. The resulting flexibility is then conveyed to the market operator via exclusive groups of block bids. We evaluate our method for a utility serving the Swiss town of Losone, where flexibility from multiple heat pumps distributed across the grid must be aggregated and bid in the Swiss day-ahead auction. Results show that our method aggregates accurately, achieving 98% of the theoretically possible cost savings. This aggregation accuracy remains stable even as the number of heat pumps increases, while computation time grows only linearly, demonstrating strong scalability.
title Bidding Aggregated Flexibility in European Electricity Auctions
topic Systems and Control
url https://arxiv.org/abs/2512.13557