Efficient clustering of DERs in a virtual association for profit optimization

Vasileios Botsis, Nikolaos D. Doulamis, Anastasios D. Doulamis, Prodromos Makris, Emmanouel Varvarigos

Research output: Chapter in Book/Report/Conference proceedingConference PaperResearchpeer-review

5 Citations (Scopus)


The Feed In Tariff policy (FIT) used for accelerating renewable energy investments cannot be retained as a sustainable business model for the future smart energy grid. It is also evident that the current centralized electricity market
prevents small or very small energy producers, who usually generate energy by renewable means, to participate. In this paper, addressing the aforementioned problems, at first, we present a decentralized architecture (Virtual DER Clusters),
where small Distributed Energy Sources (DERs) are united in coalitions, each participating in the market as a single entity. Then, efficient clustering algorithms are proposed based on a min-max optimization policy in order to dynamically derive the cluster that best satisfies coalition’s goals. Maximization in the sense of increasing as much as possible the profits of small-scale energy producers. Minimization in the sense of creating dynamically most competitive clusters. In this paper, three clustering policy schemes are discussed, each presenting different advantages with respect to the contradictory benefits
between DERs and power utilities. From the examined policies, a fair sharing allocation scheme seems to be a good compensator between the electricity market and the small-scale players.
Original languageEnglish
Title of host publication2015 Euromicro Conference on Digital System Design (DSD 2015)
EditorsJoão Canas Ferreira, Paris Kitsos
Place of PublicationPiscataway NJ USA
PublisherIEEE, Institute of Electrical and Electronics Engineers
Number of pages8
ISBN (Electronic)9781467380355
ISBN (Print)9781467380348
Publication statusPublished - 20 Oct 2015
Externally publishedYes
EventEuromicro Conference on Digital System Design (DSD) 2015 - Funchal, Madeira, Portugal
Duration: 26 Aug 201528 Aug 2015
Conference number: 18th


ConferenceEuromicro Conference on Digital System Design (DSD) 2015
Abbreviated titleDSD 2015
CityFunchal, Madeira
OtherDSD 2015 is co-located with the 41st Euromicro Conference on Software Engineering and Advanced Applications (SEAA 2015).
Internet address


  • Fair sharing allocation
  • Min-max clustering
  • Virtual DER Clustering architecture
  • Virtualization

Cite this