Modeling the Energy Cooperation between Regionally Interconnected Aggregators using Bilateral Agreements

Abstract

Traditional centralized power dispatching systems have inherent limitations in dealing with the increasing penetration of variable renewable energy generation in distribution networks. This study presents a flexible energy exchange mechanism for regionally interconnected aggregators in regards to VRE penetration. Direct energy exchange between neighboring aggregators is proposed as a promising method of maximizing social welfare (i.e. maximization of end-users benefits and minimization of energy costs). The main idea of the proposed mechanism is to develop a parallel energy exchange cooperation between physically connected aggregators ensuring operational efficiency of the power systems at a local level. Given that neighboring aggregators may have differences in their energy generation and usage patterns these differences can be utilized to bridge the mismatch of each other’s supply shortage. An operational scenario of regionally interconnected aggregators is presented and investigated. The initial simulation results have illustrated the effectiveness and reliability of the proposed model and method.

Modeling, Optimization, and Analysis of a Virtual Power Plant Demand Response Mechanism for the Internal Electricity Market Considering the Uncertainty of Renewable Energy Sources

“…The VPP objective function seeks to minimize utility costs at each bus over the planning horizon. To reach the aim of cost optimization, initially, a base case problem is used without the DR program, and a BESS is expressed by Equation (10).…”

“…However, integrating RESs such as (WTs and PVs) into the power market has been recognized as one of the potential problems facing utility grids. PV and WT inconsistent generation leads to commercial and technical problems such as voltage violation, power market commitment, unit commitment, and spinning reserves, all of which contribute to operational instability of the power system [6][7][8][9][10][11]. Therefore, to address these challenges, system operators must consider developing innovative approaches and models to manage the inherent unpredictability that comes with WT and PV technologies.…”

The Development of Cross-Border Energy Trade Cooperation Model of Interconnected Virtual Power Plants Using Bilateral Contracts

“…A VPP is viewed as a viable trading platform that will increase the utilization of distributed energy resources (DERs) and also benefiting end users. [1][2][3][4][5]. However, a number of critical challenges must be dealt with to ensure the safe operation and reliability of the power systems at a local level.…”

The Development of a Cross-Border Energy Trade Cooperation Model of Interconnected Virtual Power Plants Using Bilateral Contracts

“…A VPP is viewed as a viable trading platform that will increase the utilization of distributed energy resources (DERs) and also benefiting end users. [1][2][3][4][5]. However, a number of critical challenges must be dealt with to ensure the safe operation and reliability of the power systems at a local level.…”

“…The power loss owing to the proximity of these VPPs will also be minimized. The main idea proposed in light of the following considerations is as follows: (1) VPPs are used for diverse objectives and may differ greatly in terms of their design architecture, energy types, and loads within them, just as their day-to-day power patterns of energy generation and consumption may likewise also vary; (2) this imbalance between energy generation and consumption typically results in "complementarities" between their peak and valley demand times. As a result, the complementary characteristics of both VPPs can be exploited to compensate for each other's short-term energy shortfall.…”