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

Abstract

By coordinating the operation of regionally interconnected virtual power plants (VPPs), the growing penetration problem of renewable energy sources (RESs) into the power system can be addressed. This study presents an interactive trading cooperation model of regionally interconnected VPPs using bilateral contracts. The proposed model maximizes overall electricity market social welfare (SW) (i.e., maximization of consumer benefits while minimizing energy costs). The focus of the proposed approach is to design and develop a parallel energy exchange cooperation model of interconnected VPPs, ensuring the operational efficiency and reliability of interconnected power systems over the planning horizon. Given that adjacent VPPs may have differences in their energy generation and usage patterns, a scenario tree method is used to model the uncertainties associated with solar irradiation and load demand. A case study of two interconnected VPPs is used, the operational scenario is designed, and the corresponding computational model is developed. The results highlight that the proposed approach gives VPPs the option to utilize their internal network’s maximum capacity. As a result, there will be less reliance on the main grid for interconnected VPPs, and an improvement in key performance indicators, including the cost of the VPPs systems and renewable power variations.