Two-Stage Bidding Strategy of Virtual Power Plant in Electricity and Carbon Emissions Trading Markets

Abstract

In order to promote the consumption of renewable energy under the market environment, the virtual power plant (VPP) integrates distributed wind power, photovoltaic generator, energy storage system, controllable load and other dispatchable resources to participate in electricity market as a whole. Meanwhile, VPP can participate in the carbon emissions trading market (CETM) to improve its environmental benefits. At present, few articles study the bidding strategy of VPP for multiple markets, and the specific current market mechanism in China was also not considered. To solve the above research gap, aiming at the optimal operation of VPPs facing the day-ahead electricity market (DAEM), real-time electricity market (RTEM) and CETM, a two-stage bidding strategy of VPP is established to maximize its revenue while minimizing its operational risk. This paper adopts CVaR as the risk measurement index to quantify risks caused by uncertainties of wind power output, photovoltaic output and electricity price. When developing the bidding strategy, consider the deviation electricity tariff settlement mechanism (DETSM) in China's current electricity market operation mechanisms, and analyze its impact on VPP's revenue. Finally, an example is given to verify the effectiveness of the proposed bidding strategy.