An optimum bidding strategy of CVPP by interval optimization

Abstract

Virtual power plant (VPP) aggregates distributed energy resources (DER) as a single profile to overcome scale disadvantage and dispersed characteristics. A commercial virtual power plant (CVPP) especially operates to improve the power‐market involvement. In this article, the CVPP medium‐term bidding strategy is optimized to obtain the profit interval mostly preferred by the CVPP's decision maker. Because the medium‐term forecast of renewable power generation and day ahead (DA) market price is far more difficult than short term, interval optimization is proposed, which does not require uncertain variable‐distribution assumption. The pessimism degree is introduced to quantify the decision maker's risk acceptance and compare intervals so as to solve the interval‐optimization model. Within the interval‐optimization framework, the bidding strategy between the bilateral contract (BC) and the DA market is figured out. A combined DA market deal and gas turbine generator strategy is proposed to cope with power shortage. Finally, an in‐depth sensitivity analysis is applied, and the characteristics and caution of interval optimization are deduced. © 2018 Institute of Electrical Engineers of Japan. Published by John Wiley & Sons, Inc.