Bidding Strategy for VPP and Economic Feasibility Study of the Optimal Sizing of Storage Systems to Face the Uncertainty of Solar Generation Modelled with IGDT

Henao, Michelle Maceas; Oviedo, Jairo José Espinosa

doi:10.3390/en15030953

Cited by 8 publications

(5 citation statements)

References 31 publications

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“…The creation and operation of VPPs involves the application of complex ICT techniques dealing with the modeling of the energy assets and energy flows, forecasting of local energy demand and generation, operation optimization to meet the defined goals using heuristics, and finally portfolio management and actuation for closing the loop [5,6,73] (see Figure 3). Energy communities' sustainability 18 [51,52,63,64,93,[95][96][97][98][99][100][101][102][103][104][105][106][107][108] In Sections 3 and 4, we will present the results of the study carried out on the research literature following the methods described above.…”

Section: Vpp Concept and Technologymentioning

confidence: 99%

“…This scenario was embraced especially by communities where the distribution of energy from raw materials is problematic or implies costs that cannot be supported. Even inside the community, the distribution of that energy is important, and in this type of architecture, the storage resources play a big part in the distribution system [104].…”

Section: Energy Communities' Sustainabilitymentioning

confidence: 99%

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Virtual Power Plant Optimization in Smart Grids: A Narrative Review

2022

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Virtual power plants (VPPs) are promising solutions to address the decarbonization and energy efficiency goals in the smart energy grid. They assume the coordination of local energy resources such as energy generation, storage, and consumption. They are used to tackle problems brought by the stochastic nature of renewable energy, lack of energy storage devices, or insufficient local energy flexibility on the demand side. VPP modeling, management, and optimization are open to research problems that should consider, on one side, the local constraints in the operation of the energy resources and power flows and the energy grid’s sustainability objectives on the other side. There are multiple goals to create a VPP, such as to deliver energy services on a market or to the grid operator, to operate a microgrid in autonomy decoupled from the main grid, or to sustain local energy communities. In this paper, we present the results of a narrative review carried out on the domain of VPP optimization for the local energy grid integration. We have defined a search strategy that considers highly rated international databases (i.e., Elsevier, IEEE, and MDPI) in a six-year timeframe and applied objective inclusion/exclusion criteria for selecting articles and publications for the review; 95 articles have been analyzed and classified according to their objectives and solutions proposed for optimizing VPP integration in smart grids. The results of the study show that VPP concepts and applications are well addressed in the research literature, however, there is still work to be done on: engaging prosumers and citizens in such a virtual organization, developing heuristics to consider a wider range of local and global constraints and non-energy vectors, and to decentralize and make transparent the services delivery and financial settlement towards community members. This study can help researchers to understand the current directions for VPP integration in smart grids. As a next step we plan to further analyze the open research directions related to this problem and target the development of innovative solutions to allow the integration of multi-energy assets and management of cross energy sector services in energy communities.

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Section: Vpp Concept and Technologymentioning

confidence: 99%

Section: Energy Communities' Sustainabilitymentioning

confidence: 99%

Virtual Power Plant Optimization in Smart Grids: A Narrative Review

2022

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“…Hence, electricity market-specific solutions can be invented as follows. First, optimal bidding strategies for electricity markets have been developed in several studies [20][21][22][23][24][25][26][27][28][29]. In these references, Baltaoglu et al [29], for example, proposed a type of arbitrage called "virtual bidding".…”

Section: Introductionmentioning

confidence: 99%

Effectiveness and Feasibility of Market Makers for P2P Electricity Trading

2022

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Motivated by the growing demand for distributed energy resources (DERs), peer-to-peer (P2P) electricity markets have been explored worldwide. However, such P2P markets must be balanced in much smaller regions with a lot fewer participants than centralized wholesale electricity markets; hence, the market has inherent problems of low liquidity and price instability. In this study, we propose applying a market maker system to the P2P electricity market and developing an efficient market strategy to increase liquidity and mitigate extreme price fluctuations. To this end, we construct an artificial market simulator for P2P electricity trading and design a market agent and general agents (photovoltaic (PV) generators, consumers, and prosumers) to perform power bidding and contract processing. Moreover, we introduce market-maker agents in this study who follow the regulations set by a market administrator and simultaneously place both sell and buy orders in the same market. We implement two types of bidding strategies for market makers and examine their effects on liquidity improvement and price stabilization as well as profitability, using solar PV generation and consumption data observed in a past demonstration project. It is confirmed that liquidity and price stability may be improved by introducing a market maker although there is a trade-off relationship between these effects and the market maker’s profitability.

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“…The battery's installed capacity is one of the most important variables to maintaining a beneficial cost-benefit relationship [1]. Therefore, different mathematical and algorithm techniques have been applied to tackle the optimal sizing problem in power systems with a high penetration of PV panels [19][20][21], wind turbines [22][23][24], or hybrid systems [25][26][27][28].…”

Section: Introductionmentioning

confidence: 99%

DC Optimal Power Flow Model to Assess the Irradiance Effect on the Sizing and Profitability of the PV-Battery System

et al. 2022

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The decreasing cost of renewable energy resources and the developments in storage system technologies over recent years have increased the penetration of photovoltaic systems to face the high rise in the electricity load. Likewise, there has also been an increase in the demand for tools that make this integration process in the current power systems profitable. This paper proposes a mathematical model based on the DC optimal power flow equations to find the optimal capacity of the PV panels and batteries for a standalone system or a system supported by the grid, while the investment and the energy required by the grid are minimized. In this regard, five different locations have been used as case studies to measure the influence of the irradiance level on the PV-Battery capacity installed and on the economic indicators such as CAPEX, OPEX, NPV, IRR, and the payback period. Thus, a modified 14-bus system has been used to replicate the grid technical limitations and show that a PV-Battery system connected to the grid could produce 26.9% more savings than a standalone PV-Battery and that a location with irradiance levels over 6.08 (kWh/m2/yr) could reduce the payback period for two years.

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Bidding Strategy for VPP and Economic Feasibility Study of the Optimal Sizing of Storage Systems to Face the Uncertainty of Solar Generation Modelled with IGDT

Cited by 8 publications

References 31 publications

Virtual Power Plant Optimization in Smart Grids: A Narrative Review

Virtual Power Plant Optimization in Smart Grids: A Narrative Review

Effectiveness and Feasibility of Market Makers for P2P Electricity Trading

DC Optimal Power Flow Model to Assess the Irradiance Effect on the Sizing and Profitability of the PV-Battery System

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