Economic scheduling of virtual power plant in day-ahead and real-time markets considering uncertainties in electrical parameters

Abstract

The virtual power plant (VPP) concept, which offers energy efficiency, benefits significantly from the tremendous potential of integrating distributed energy resources (DERs). This work proposes optimal economic dispatch of virtual power plant (VPP), and the problem is formulated in a novel way considering the potential of energy storage systems (ESS) of electric vehicles (EVs) and data center (DC) in a data center facility test model using optimized energy management system (EMS). The problem is evaluated for maximizing the revenue for VPP considering market prices and the uncertainties in the distributed energy resources. To this purpose, a techno-economic analysis of the proposed test system of VPP is evaluated using mixed-integer linear programming (MILP). Renewable generation, electricity price, load demand, and real-time EV behavior uncertainty analysis are forecasted using Long Short-Term Memory (LSTM) along with DC battery degradation analysis which constitutes the optimization model. The results showed that the VPP EMS can perform optimal power scheduling with the day ahead and real-time electricity price scenarios. Moreover, further analysis including battery degradation cost of DC UPS ESS proved the capability of the proposed framework by up to 2064.4 $/h revenue for day-ahead price and 562 $/h revenue for the real-time price compared to revenue without battery degradation cost. A simulation scenario is also carried out where the constant load demand and the battery storage powers are varied between 50% and 150%. It can be concluded that the 500 kW and 750 kW ESS (100% and 150%) are better choices as compared to 250 kW (50%) during increased load demand for investors due to their higher revenue. Hence it is concluded that this research highlights the importance of revenue benefits from deploying VPP with the collaborative operation of DERs.