In this project, we propose a hierarchical energy management scheme for aggregating Distributed Energy Resources (DERs) for grid flexibility services. To prevent a direct participation of numerous prosumers in the wholesale electricity market, aggregators, as self-interest agents in our scheme, incentivize prosumers to provide flexibility. We firstly model the economic behaviour of aggregators and prosumers as a noncooperative aggregative game. Then a fully distributed algorithm in discrete time is proposed to find the corresponding Nash Equilibrium (NE). In this algorithm, each aggregator only needs to exchange its estimate of the aggregated flexibility and an auxiliary variable with its neighbours. Convergence of the algorithm is proven using operator theoretic techniques.

This work has been presented in Benelux Meeting on Systems and Control 2022 and International Symposium on Mathematical Theory of Networks and Systems 2022.