Time series aggregation - A new methodological approach using the peak-load-pricing model

Coping with fluctuating renewables and large-scale integrated systems raises new challenges related to achieving simultaneously manageable computation times and sufficient levels of detail in energy optimization models. The present contribution proposes a new methodological approach for identifying appropriate time series aggregation, which may complement heuristic and numerical approaches. The basic idea is to define an evaluation criterion that assesses the quality of the solution of the model based on the aggregated time series (reduced problem) compared to the solution of the original problem. Analytical results may be derived for a simplified version of this problem, known as the peak-load-pricing model.