Decision making of a virtual power plant under uncertainties for bidding in a day-ahead market using point estimate method

Peikherfeh, M.; Seifi, Hossein; Sheikh‐El‐Eslami, Mohammad Kazem

doi:10.1016/j.ijepes.2012.07.016

Cited by 203 publications

(89 citation statements)

References 36 publications

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“…VPPs provide an alternative way to enable the bidding of different types of DERs in power markets, by aggregation and provision of an overall operating profile. While most of the prior research on bidding strategies of VPPs focused on one specific spot market [8] or neglected the details of the market [9], [10], this paper aims to provide optimal trading strategies for a VPP considering its participation in multiple trading floors (e.g. DA market, ID market and BM).…”

Section: B Related Work and Contributionsmentioning

confidence: 99%

Trading strategy for decentralized energy resources in sequential electricity markets: A swiss case study

Han

Kardakos

Hug

2017

2017 IEEE Innovative Smart Grid Technologies - Asia (ISGT-Asia)

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Abstract-This paper derives optimal day-ahead trading strategies for an aggregator of a decentralized energy resources' mix, who participates in a multi-market environment, including a day-ahead, an intraday and a balancing market. The optimization problem is solved using multi-stage stochastic programming, which is subject to different levels of uncertainties such as variable generation output, day-ahead and intraday market prices. Risk management is conducted to investigate the effect of risk exposure on the total revenue of the aggregator. A case study based on the data from the Swiss electricity market demonstrates the effectiveness of the proposed model.Index Terms-Decentralized energy resources (DER), electricity markets, mathematical programs with equilibrium constraints, price maker, probabilistic constraints. I. INTRODUCTION A. Motivation and GoalThe spot electricity market is a public financial market where electricity is traded on a short-term basis. It is organized as a sequence of markets, generally including a day-ahead (DA) market, several intraday (ID) markets and a balancing market (BM). In parallel, ancillary services markets are required to guarantee the secure operation of the grid in case of serious system contingencies. The spot market is gaining more and more importance, since it ensures the short-term optimization of procurement and supports the efficient integration of non-dispatchable energy resources in power markets. In recent years, the penetration of distributed energy resources (DERs), which are mainly renewable energy resources, has increased dramatically. However, DERs' participation in the market is still challenging due to the restrictions imposed by market regulations, their intermittent and uncertain nature and the lack of communication and cooperation among different DERs and system operators. These factors thus limit DERs' contributions to system operations and can cause high imbalance costs and low overall energy efficiency.In order to fully utilize the value of flexibility potential of different DERs and enable them to engage in sequential electricity markets, coordinated dispatch and trading strategies at an aggregation level are of great interest. B. Related Works and ContributionsA lot of work has been done in the field of optimal trading in sequential short-term markets, but most of them focuses on a single producer's point of view and on designing optimal trading strategies either for large-scale wind power plants or for wind producers coordinated only with energy storage

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Section: B Related Work and Contributionsmentioning

confidence: 99%

Trading strategy for decentralized energy resources in sequential electricity markets: A swiss case study

Han

Kardakos

Hug

2017

2017 IEEE Innovative Smart Grid Technologies - Asia (ISGT-Asia)

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“…The problem is also formulated as a Mixed Integer Linear Programming (MILP) to be solved by available commercial optimization programs. In [44], a probabilistic approach based on PEM is used in a VPP. In this study, the uncertainty of DERs is compensated with the additional reserves.…”

Section: Operation Systems Of Vppmentioning

confidence: 99%

A review on the virtual power plant: Components and operation systems

Ghavidel

Aghaei

et al. 2016

2016 IEEE International Conference on Power System Technology (POWERCON)

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Abstract--Due to the high penetration of Distributed Generations (DGs) in the network and the presently involving competition in all electrical energy markets, Virtual Power Plant (VPP) as a new concept has come into view, with the intention of dealing with the increasing number of DGs in the system and handling effectively the competition in the electricity markets. This paper reviews the VPP in terms of components and operation systems. VPP fundamentally is composed of a number of DGs including conventional dispatchable power plants and intermittent generating units along with possible flexible loads and storage units. In this paper, these components are described in an all-inclusive manner, and some of the most important ones are pointed out. In addition, the most important anticipated outcomes of the two types of VPP, Commercial VPP (CVPP) and Technical VPP (TVPP), are presented in detail. Furthermore, the important literature associated with Combined Heat and Power (CHP) based VPP, VPP components and modeling, VPP with Demand Response (DR), VPP bidding strategy, and participation of VPP in electricity markets are briefly classified and discussed in this paper.

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“…In other words, the CVPP optimizes its portfolio with reference to the wholesale markets, and passes DER schedules and operating parameters to the TVPP. The TVPP uses input from the CVPPs operating in its area to manage any local network constraints and determine the characteristics of the entire local network at the grid supply points [10].Thus, the role of TVPP in distribution networks is the same as the TSO's role in transmission systems.…”

Section: Introductionmentioning

confidence: 99%

FLECH: A Danish market solution for DSO congestion management through DER flexibility services

Zhang

Ding

Nordentoft

et al. 2014

J. Mod. Power Syst. Clean Energy

101

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Future electric power systems will face new operational challenges due to the high penetration of distributed energy resources (DERs). In Denmark, distribution system operator (DSO) expects a significant congestion increased in distribution grids. In order to manage these congestions and mobilize the DERs as economically efficient as possible in the future distribution grid, the brand new notion of flexibility clearing house (FLECH) is proposed in this paper. With the aggregator-based offers, the proposed FLECH market has the ability to promote small scale DERs (upto 5 MW) for actively participating in trading flexibility services, which are stipulated accommodating the various requirements of DSO. Accordingly, the trading setups and processes of the FLECH market are also illustrated in detail. A quantitative example is utilized to illustrate the formulation and classification of flexibility services provided by the DERs in the proposed FLECH market.

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Decision making of a virtual power plant under uncertainties for bidding in a day-ahead market using point estimate method

Cited by 203 publications

References 36 publications

Trading strategy for decentralized energy resources in sequential electricity markets: A swiss case study

Trading strategy for decentralized energy resources in sequential electricity markets: A swiss case study

A review on the virtual power plant: Components and operation systems

FLECH: A Danish market solution for DSO congestion management through DER flexibility services

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