Optimal Bidding Strategy for a RES Virtual Power Plant in the Spot Market

Abstract

Recently, the penetration of renewable energy source(RES) have been growing globally, encouraged by environmental policies and low-carbon energy policies. Due to the volatility and uncertainty of renewable energy output, it is very difficult to bid in the market alone. To solve this problem, combining wind power(WP), photovoltaic(PV) and power storage units to form a virtual power plant(VPP) is an effective path to stabilize the output deviation and promote renewable energy consumption. In this paper, a VPP consists of wind power generation, photovoltaic generation, power storage units and load are enabled to participate in the wholescale markets, including day-ahead(DA) market and real-time(RT) market. The objective of the VPP in this paper is to maximize the profit on DA and RT market. To achieve this goal, an optimal bidding model is proposed. In this model, several important market uncertainties are considered, consisting of RES generation, DA market price and RT market price. A fuzzy optimization method is applied to deal with the uncertainty of RES generation. Moreover, the uncertainties of DA market price and RT market price are handled by a robust optimization. Finally, an example is given to verify the effectiveness of the bidding strategy.