Abstract
This paper addresses the optimal bidding strategy problem of a commercial virtual power plant (CVPP), which comprises of distributed energy resources (DERs), battery storage systems (BSS), and electricity consumers, and participates in the day-ahead (DA) electricity market. The ultimate goal of the CVPP is the maximization of the DA profit in conjunction with the minimization of the anticipated real-time production and the consumption of imbalance charges. A three-stage stochastic bi-level optimization model is formulated, where the uncertainty lies in the DA CVPP DER production and load consumption, as well as in the rivals’ offer curves and real-time balancing prices. Demand response schemes are also incorporated into the virtual power plant (VPP) portfolio. The proposed bi-level model consists of an upper level that represents the VPP profit maximization problem and a lower level that represents the independent system operator (ISO) DA market-clearing problem. This bi-level optimization problem is converted into a mixed-integer linear programing model using the Karush–Kuhn–Tucker optimality conditions and the strong duality theory. Finally, the risk associated with the VPP profit variability is explicitly taken into account through the incorporation of the conditional value-at-risk metric. Simulations on the Greek power system demonstrate the applicability and effectiveness of the proposed model.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.