Probabilistic Aggregated Bidding Strategy for Flexibility Service Providers to use Uncertain Resources

In the flexibility market, flexibility service providers could merge and bid on renewable generating resources. However, renewable resources are subject to stochastic behavior. Furthermore, the flexibility market operator may impose very high penalties if the contracted power is not generated by the committed unit. As a result, flexibility providers may prefer not to use these resources in the flexibility market. The aggregated bidding strategy could decrease the risk of not generating. This paper proposes a probabilistic model for combining and utilizing uncertain generating units in the flexibility market. Based on profit maximization, the proposed probabilistic model schedules stochastic resources in a way that satisfies the predefined confidence level. Moreover, the energy storage is used as a backup unit to compensate for uncertain resources. Through a case study that contains three uncertain resources and two battery storages, with 27 hourly scenarios, the performance and effectiveness of the proposed model are assessed.