Optimal VPP operation strategy in liberalized electricity markets

Abstract

The concept of the virtual power plants (VPPs) in smart grids is receiving a great deal of attention because of the following two potentials. One is that the virtual power plant can secure the power system by controlling the power for customers participating in the demand response program and the energy storage systems in order to maintain the power system operation. The other is that the virtual power plant can effectively integrate renewable energy sources (RESs) with the power system to increase the penetration level of RESs and provide different types of auxiliary services for system operations. Although the virtual power plant is of benefit to the power system, it would also be beneficial for VPPs operators to be able to quantify the earnable profit of such an operation. The aim of this paper is to present a methodology for determining the maximum profit for virtual power plants in liberalized electricity markets through optimal power flow by controlling the power for customers participating in the demand response program and the energy storage systems in the presence of RESs. With the proposed method, business owners can more effectively operate VPPs. The test results of a modified IEEE 37-node feeder test system are presented.

Hybrid uncertainty‐based offering strategy for virtual power plants

“…Accordingly, determining a suitable offering/bidding strategy for a VPP by considering its components is necessary. To achieve this, some studies have tried to find an optimised strategy for VPP participation in the electricity market [15–18]. The study in [15] discussed the bidding of a VPP in a joint market of energy and spinning reserve.…”

“…Fuzzy optimisation was applied to determine the day‐ahead (DA) bidding strategy of the VPP while considering the uncertainties that the VPP may handle. In [17], a model for VPP profit maximisation is proposed taking into account demand response participation and storage systems. The study in [18] developed a novel control and bidding strategy for a VPP consisting of renewable power generators and inelastic demand.…”