Abstract

As renewable energies become the main direction of global energy development in the future, Virtual Power Plant (VPP) becomes a regional multi-energy aggregation model for large-scale integration of distributed generation into the power grid. It also provides an important way for distributed energy resources (DER) to participate in electricity market transactions. Firstly, the basic concept of VPP is outlined, and various uncertainties within VPP are modeled. Secondly, using multi-agent technology and Stackelberg dynamic game theory, a double-layer nested dynamic game bidding model including VPP and its internal DERs is designed. The lower layer is a bidding game for VPP internal market including DER. VPP is the leader and each DER is a subagent that acts as a follower to maximize its profit. Each subagent uses the particle swarm algorithm (PSA) to determine the optimal offer coefficient, and VPP carries out internal market clearing with the minimum variance of unit profit according to the quoting results. Then, the subagents renew the game to update the bidding strategy based on the outcomes of the external and internal markets. The upper layer is the external market bidding game. The trading center (TC) is the leader and VPP is the agent and the follower. The game is played with the goal of maximum self-interest. The agent uses genetic algorithms to determine the optimal bid strategy, and the TC carries out market clearance with the goal of maximizing social benefits according to the quotation results. Each agent renews the game to update the bidding strategy based on the clearing result and the reporting of the subagents. The dynamic game is repeated until the optimal equilibrium solution is obtained. Finally, the effectiveness of the model is verified by taking the IEEE30-bus system as an example.

Highlights

  • With the continuous increase of power demand and the increasingly severe problems of global energy shortages and environmental pollution, distributed generations (DG) have been adopted by more and more countries due to their reliability, economy, flexibility and environmental protection.Nowadays, the global power industry is rapidly transforming, and the power system should be based on market operations

  • To determine the optimal offer coefficient, and Virtual Power Plant (VPP) carries out internal market clearing with the minimum variance of unit profit according to the quoting results

  • This paper considers transfer load (TL) and incentive-based interruptible load (IL) based on time-sharing price (TP) mechanism

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Summary

Introduction

With the continuous increase of power demand and the increasingly severe problems of global energy shortages and environmental pollution, distributed generations (DG) have been adopted by more and more countries due to their reliability, economy, flexibility and environmental protection.Nowadays, the global power industry is rapidly transforming, and the power system should be based on market operations. With the continuous increase of power demand and the increasingly severe problems of global energy shortages and environmental pollution, distributed generations (DG) have been adopted by more and more countries due to their reliability, economy, flexibility and environmental protection. Because of the characteristics of DG, such as small capacity and being random, intermittent and volatile, it is not feasible for them to join power market operations alone. Most studies use the concept of microgrid (MG) as the grid connection form of DG [1]. MG can well coordinate the technical contradiction between large power grids and DGs, and has Energies 2018, 11, 3072; doi:10.3390/en11113072 www.mdpi.com/journal/energies. There are some limitations on the effective use of multi-regional and large-scale DGs and the economies of scale in the power market [2]. The concept of Virtual Power Plant (VPP)-provides new ideas for solving these problems

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