A multi-objective and multi-decision maker approach for the balancing market in distribution grids in presence of aggregators

A multi-objective optimization problem is here formalized for a distribution grid in which are present both traditional generators and aggregators of microgrids, buildings, or general local prosumers. At the lower level, generators and aggregators want to maximize their profit, taking into account the limits of the flexibility they can sell. At the higher level, the distribution system operator (DSO) receives power/price bids from market participants and, based on technical and economic considerations, decides which bid to accept. For the lower-level decision problem, the Karush Khun Tucker (KKT) conditions are developed and included as constraints within the higher-level optimization problem. The resulting optimization problem is applied to a modified IEEE 13-bus system.