AUGMECON2-based multi-objective optimization of virtual power plant considering economical and security operation of the distribution networks

Abstract

With the rapid development of massive multivariate distributed energy resources on the demand side, the distribution network is transforming from traditional passive to active management. By constructing the virtual power plant, distribution network operators will handle the management and transactions of those distributed resources as their participation in the electricity market becomes normal. Moreover, distributed resources will affect the operating economy and security of the distribution network, such as network losses and peak loads. Thus, distribution network operators must consider both the security of distribution networks as well as the economics of distributed resources. To address this issue, a virtual power plant with the distribution network operator as the stakeholder has been built. A multi-objective optimization model based on the improved augmented ε-constraint method (AUGMECON2) method is then proposed. The key objective is to maximize operating benefits while also accounting for network losses and peak-to-valley load disparity of the slack bus. To address the uncertainty of renewable energy, a dynamic reserve capacity calculation approach is developed, taking into account the economics as well as transaction reliability. The Pareto frontier of the multi-objective optimal problem is obtained by AUGMECON2, and a compromised solution considering fairness is proposed. Finally, the proposed method is verified with case studies based on the modified IEEE33-node distribution network system.