Profit Based Self Scheduling of Virtual Power Plant Under Multiple Locational Marginal Prices

Abstract

Integration of DERs and prosumers as a single plant to obtain allied benefits via market interface introduces the concept of Virtual Power Plant (VPP). This aggregation imposes techno-economic challenges on VPP operator while participating into LMP based wholesale market. Moreover, widely dispersed DERs connected at different nodes with transmission bus experiences multiple Locational Marginal Prices (LMPs). This would impact VPP scheduling and trading decisions, hence require in-depth investigations. In this regard, this paper presents a mathematical exposition for network constrained VPP scheduling with LMP based wholesale market participation. IEEE 30-bus system is modified to implement the proposed model. Results demonstrate that multiple LMPs substantially help VPP operator in optimal resource allocation while maintaining network flows within limits. Further, power mismatch is traded into LMP based market through multiple nodes to maximize its profit. Proposed model would help VPP operator to maintain a consistent system in view of technical and market aspects.