Aggregation and Profit Allocation Models for Distributed Energy Resources Aggregator.

Aggregators are expected to play a vital role in the utilization of distributed energy resources (DERs) in the smart grids. This paper considers an aggregation model that allows an aggregator to orchestrate a set of heterogeneous DERs while enabling energy exchange among subscribed DERs and to participate in a day-ahead market. We define a flexibility index FlexI to quantity the flexibility offered by a DER and propose a novel profit allocation model based on the FtexI. The efficacy of the proposed models is demonstrated by evaluating their performance on a group of heterogeneous DERs using data traces from real-world electricity market.