Reliability-Based Optimal Bidding Strategy of a Technical Virtual Power Plant

Technical virtual power plant (TVPP) aggregates distributed energy resources in order to trade in wholesale electricity market while taking operational constraints of network into account and offering services to distribution system operator. This article presents a new framework to incorporate the...

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Bibliographic Details
Published in:IEEE systems journal Vol. 16; no. 1; pp. 1080 - 1091
Main Authors: Pourghaderi, Niloofar, Fotuhi-Firuzabad, Mahmud, Kabirifar, Milad, Moeini-Aghtaie, Moein, Lehtonen, Matti, Wang, Fei
Format: Journal Article
Language:English
Published: New York IEEE 01.03.2022
The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects:
Aggregates
Bidding strategy
Contingency
Distributed generation
Distribution networks
electricity market
Energy sources
Integer programming
Linear programming
Mixed integer
Network reliability
Optimization
Outage costs
Plant reliability
Power plants
Reliability
Schedules
Switches
technical virtual power plant (TVPP)
Uncertainty
Virtual power plants
ISSN:1932-8184, 1937-9234
Online Access:Get full text
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Summary:Technical virtual power plant (TVPP) aggregates distributed energy resources in order to trade in wholesale electricity market while taking operational constraints of network into account and offering services to distribution system operator. This article presents a new framework to incorporate the reliability of distribution network into designing the optimal bidding strategy of a TVPP in day-ahead energy market. In the proposed framework, the TVPP determines the multisteps biddings as pairs of power and price aiming at maximizing its profit in market while minimizing the outage costs due to contingency occurrences. The model is formulated as a bilevel optimization problem in which the upper level maximizes the TVPP's profit regarding network reliability and the lower level clears the market from ISO's viewpoint. Using Karush-Kuhn-Tucker optimality conditions and strong duality theory, the model is converted to a mixed integer linear programming optimization problem. The proposed framework is implemented on the Roy Billinton test system to illustrate the effectiveness of the model.
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ISSN:1932-8184
1937-9234
DOI:10.1109/JSYST.2020.3044842