Hierarchical Mathematical Optimization Model for Grid-Oriented Management of Aggregated Prosumer Communities
Iraide López, Julen Gómez-Cornejo, Itxaso Aranzabal, Elvira Fernandez, Angel Javier Mazón Department of Electrical Engineering, Bilbao Scholl of Engineering, University of the Basque Country (UPV/EHU). Bilbao, Biscay, Spain 2026-06-27

Abstract

This work presents a hierarchical mathematical optimization model for grid-oriented management of aggregated residential prosumer communities, equipped with photovoltaic (PV) generation and battery energy storage systems (BESS). Beyond maximizing individual self-consumption, the proposed Energy Management Strategy (EMS) targets power system operation by enabling aggregated storage to provide flexibility services to the grid.

The model operates through a three-level control architecture (Local Edge Level, Collective Balancing Layer, and Virtual Power Plant Interface) using real irradiance data and actual demand patterns. Local energy excesses and shortages are first matched internally to maximize collective efficiency and reduce power exchanges. At the upper level, the aggregated community is managed as a single flexible asset through a global community state of charge, reserving 10% of the total storage capacity for secondary regulation (Frequency Restoration Reserves, FRR). The fixed 10% band is defined based on criteria aimed at maximizing participation in grid stability services without compromising the physical integrity of the storage systems or the continuity of user supply.

Simulation results demonstrate that the hierarchical strategy achieves collective energy autarky levels above 80% while maintaining the aggregated storage within a secure operational range suitable for frequency control. The proposed approach establishes a technically viable framework for the integration of residential prosumers as active grid-supportive resources in future decentralized power systems.

Key words: Aggregated Prosumers, Photovoltaic Energy, Battery Storage, Grid Stability.

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