Optimal operation of a virtual power plant in frequency constrained electricity market

In this study, optimal offering strategy problem of a virtual power plant (VPP) as a price-maker player in day-ahead frequency constrained electricity market is presented. The optimal offering strategy problem is modelled as a bi-level optimisation problem. In the upper-level problem, the total prof...

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Vydáno v:IET generation, transmission & distribution Ročník 13; číslo 11; s. 2123 - 2133
Hlavní autoři: Mousavi, Mohammad, Rayati, Mohammad, Ranjbar, Ali Mohammad
Médium: Journal Article
Jazyk:angličtina
Vydáno: The Institution of Engineering and Technology 04.06.2019
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ISSN:1751-8687, 1751-8695
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Abstract In this study, optimal offering strategy problem of a virtual power plant (VPP) as a price-maker player in day-ahead frequency constrained electricity market is presented. The optimal offering strategy problem is modelled as a bi-level optimisation problem. In the upper-level problem, the total profit of VPP is maximised. In the lower-level problem, the clearing conditions of frequency constrained electricity market are modelled. The proposed bi-level optimisation problem is reformulated as a mathematical programming with equilibrium constraints (MPEC) problem by using Karush–Kuhn–Tucker conditions. Then, the proposed MPEC problem, which is non-linear and hard to solve by commercial solvers, is transformed into a mixed-integer linear programming problem by using strong duality theorem and big-number mathematical technique. Here, stochastic optimisation is included in the modelling to enable the VPP for optimisation in the presence of uncertainties, e.g. renewable energy source generations, demands, and offering strategies of rivals. Finally, the effectiveness of proposed model is investigated by implementing it on various case studies.
AbstractList In this study, optimal offering strategy problem of a virtual power plant (VPP) as a price‐maker player in day‐ahead frequency constrained electricity market is presented. The optimal offering strategy problem is modelled as a bi‐level optimisation problem. In the upper‐level problem, the total profit of VPP is maximised. In the lower‐level problem, the clearing conditions of frequency constrained electricity market are modelled. The proposed bi‐level optimisation problem is reformulated as a mathematical programming with equilibrium constraints (MPEC) problem by using Karush–Kuhn–Tucker conditions. Then, the proposed MPEC problem, which is non‐linear and hard to solve by commercial solvers, is transformed into a mixed‐integer linear programming problem by using strong duality theorem and big‐number mathematical technique. Here, stochastic optimisation is included in the modelling to enable the VPP for optimisation in the presence of uncertainties, e.g. renewable energy source generations, demands, and offering strategies of rivals. Finally, the effectiveness of proposed model is investigated by implementing it on various case studies.
Author Mousavi, Mohammad
Rayati, Mohammad
Ranjbar, Ali Mohammad
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  surname: Mousavi
  fullname: Mousavi, Mohammad
  email: mohammadmousavi@ieee.org
  organization: Center of Excellence in Power System Management & Control, Sharif University of Technology, Tehran, Iran
– sequence: 2
  givenname: Mohammad
  surname: Rayati
  fullname: Rayati, Mohammad
  organization: Center of Excellence in Power System Management & Control, Sharif University of Technology, Tehran, Iran
– sequence: 3
  givenname: Ali Mohammad
  surname: Ranjbar
  fullname: Ranjbar, Ali Mohammad
  organization: Center of Excellence in Power System Management & Control, Sharif University of Technology, Tehran, Iran
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Issue 11
Keywords big-number mathematical technique
frequency constrained electricity market
renewable energy sources
optimal offering strategy problem
integer programming
strong duality theorem
virtual power plant
linear programming
upper-level problem
bi-level optimisation problem
MPEC problem
mathematical programming
mixed-integer linear programming problem
optimal operation
optimisation
day-ahead frequency
equilibrium constraints problem
price-maker player
Karush–Kuhn–Tucker conditions
VPP
duality (mathematics)
power markets
pricing
lower-level problem
Language English
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Snippet In this study, optimal offering strategy problem of a virtual power plant (VPP) as a price-maker player in day-ahead frequency constrained electricity market...
In this study, optimal offering strategy problem of a virtual power plant (VPP) as a price‐maker player in day‐ahead frequency constrained electricity market...
SourceID crossref
wiley
iet
SourceType Enrichment Source
Index Database
Publisher
StartPage 2123
SubjectTerms big‐number mathematical technique
bi‐level optimisation problem
day‐ahead frequency
duality (mathematics)
equilibrium constraints problem
frequency constrained electricity market
integer programming
Karush–Kuhn–Tucker conditions
linear programming
lower‐level problem
mathematical programming
mixed‐integer linear programming problem
MPEC problem
optimal offering strategy problem
optimal operation
optimisation
power markets
price‐maker player
pricing
renewable energy sources
Special Issue: Emerging Technologies for Virtual Power Plant and Microgrid
strong duality theorem
upper‐level problem
virtual power plant
VPP
Title Optimal operation of a virtual power plant in frequency constrained electricity market
URI http://digital-library.theiet.org/content/journals/10.1049/iet-gtd.2018.5204
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Volume 13
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