A study on the bidding strategy of the Virtual Power Plant in energy and reserve market. (February 2020)

• Record Type: Journal Article
• Authors: Nguyen-Duc, Huy; Nguyen-Hong, Nhung
• Is Part Of: Energy reports. Volume 6(2020)Supplement 2
• Page Start: 622
• Page End: 626
• Publication Date: 2020-02
• Subjects: Electricity market -- Energy storage -- Robust optimization -- Spinning reserve -- Virtual Power Plant; Power resources -- Periodicals; Energy industries -- Periodicals; Power resources; Periodicals; Electronic journals; 621.04205
• DOI: 10.1016/j.egyr.2019.11.129
• Languages: English
• ISSNs: 2352-4847

Abstract

Abstract: This paper studies the bidding strategy of a Virtual Power Plant (VPP) in a market of energy and regulation service. The operation of distributed energy resources (DER) and battery energy storage inside the VPP is analyzed. A bidding strategy of the VPP including the spinning reserve contract and day-ahead offering/bidding contract is investigated. A two-stage robust optimization model is proposed to determine the VPP's purchasing/sell power in each contract to maximize the VPP's profit. The uncertainty in the DER and demand is considered in the optimization framework. The proposed model is applied to a small VPP including the photovoltaic (PV) system, battery energy storage (BESS) equipped in a customer.