  The problem of the large-scale aggregation of the behind-the-meter demand and
generation resources by a distributed-energy-resource aggregator (DERA) is
considered. As a profit-seeking wholesale market participant, a DERA maximizes
its profit while providing competitive services to its customers with higher
consumer/prosumer surpluses than those offered by the distribution utilities or
community choice aggregators. A constrained profit maximization program for
aggregating behind-the-meter generation and consumption resources is
formulated, from which payment functions for the behind-the-meter consumptions
and generations are derived. Also obtained are DERA's bid and offer curves for
its participation in the wholesale energy market and the optimal schedule of
behind-the-meter resources. It is shown that the proposed DERA's aggregation
model can achieve market efficiency equivalent to that when its customers
participate individually directly in the wholesale market.
