Bidding strategy analysis for air-conditional aggregator considering consumers´ preference

Considering the increment of air-conditional electricity consumption, air-conditioning load aggregators (ALA) are prone to participate in bidding electricity market by managing enormous quantity and dispersive air-conditioning load (AL), which not only reduces load peak-valley difference, but also provides the opportunity for AL to take part in power market bidding. This work adopts reference price effect from behaviour economics to depict electricity consumption preference. A bi-level optimization method is being established. The upper level problem aims to maximize the social welfare, while the lower level aims to maximize the ALA benefits based on consumers´ preference. Karush-Kuhn-Tucker condition is being applied to transfer the complex bi-level problem to a solvable sing-level problem. Case studies are provided to verify the feasibility of proposed model.