Four‐level robust model for a virtual power plant in energy and reserve markets. Issue 11 (16th April 2019)

• Record Type: Journal Article
• Authors: Zhou, Yizhou; Wei, Zhinong; Sun, Guoqiang; Cheung, Kwok W.; Zang, Haixiang; Chen, Sheng
• Is Part Of: IET generation, transmission & distribution. Volume 13:Issue 11(2019)
• Page Start: 2036
• Page End: 2043
• Publication Date: 2019-04-16
• Subjects: pricing -- power markets -- optimisation -- integer programming -- linear programming -- power generation dispatch -- power generation scheduling; realistic case study -- four‐level formulation -- uncertain RT market energy prices -- optimal RT energy re‐dispatch -- stochastic power production -- SR market capacity prices -- DA market energy prices -- worst‐case realisation -- reserve dispatch -- optimisation model -- robust mixed integer linear -- multistage uncertainties -- real‐time markets -- spinning reserve -- day‐ahead -- optimal offering strategy -- scale merit -- VPP -- distributed energy resources -- reserve markets -- virtual power plant -- level robust model; Electric power production -- Periodicals; Electric power transmission -- Periodicals; Electric power distribution -- Periodicals; 621.3105
• DOI: 10.1049/iet-gtd.2018.5197
• Languages: English
• ISSNs: 1751-8687

Abstract

Abstract : The integration of distributed energy resources into a virtual power plant (VPP) can realise the scale merit. This study presents a novel approach for determining the optimal offering strategy of a VPP participating in the day‐ahead (DA), the spinning reserve (SR), and the real‐time (RT) markets. To hedge against multi‐stage uncertainties, the authors propose a robust mixed integer linear programming optimisation model that comprises four levels: (i) the optimal DA energy and reserve dispatch; (ii) the worst‐case realisation of uncertainties involved in DA market energy prices, SR market capacity prices, stochastic power production, and called balancing power; (iii) the optimal RT energy re‐dispatch; and (iv) the worst‐case realisation of uncertain RT market energy prices. Moreover, a tractable solution method based on strong duality theory and the column‐and‐constraint generation algorithm to solve the proposed four‐level formulation was developed. Finally, numerical results for a realistic case study demonstrate the efficiency and applicability of the proposed approach. The commercial benefits of this strategy are also evaluated.