Risk-Averse Optimal Energy and Reserve Scheduling for Virtual Power Plants Incorporating Demand Response Programs

AuthorsMostafa Vahedipour-Dahraie,Homa Rashidizade-Kermani,Miadreza Shafie-khah,João P. S. Catalão
JournalIEEE Transactions on Smart Grid
Page number1405-1415
Serial number12
Volume number2
Paper TypeFull Paper
Published At2021
Journal GradeISI
Journal TypeTypographic
Journal CountryIran, Islamic Republic Of
Journal IndexJCR،Scopus

Abstract

This paper addresses the optimal bidding strategy problem of a virtual power plant (VPP) participating in the dayahead (DA), real-time (RT) and spinning reserve (SR) markets (SRMs). The VPP comprises a number of dispatchable energy resources (DERs), renewable energy resources (RESs), energy storage systems (ESSs) and a number of customers with flexible demand. A two-stage risk-constrained stochastic problem is formulated for the VPP scheduling, where the uncertainty lies in the energy and reserve prices, RESs production, load consumption, as well as calls for reserve services. Based on this model, the VPP bidding/offering strategy in the DA market (DAM), RT market (RTM) and SRM is decided aiming to maximize the VPP profit considering both supply and demandsides (DS) capability for providing reserve services. On the other hand, customers participate in demand response (DR) programs by using load curtailment (LC) and load shifting (LS) options as well as by providing reserve service to minimize their consumption costs. The proposed model is implemented on a test VPP and the optimal decisions are investigated in detail through a numerical study. Numerical simulations demonstrate the effectiveness of the proposed scheduling strategy and its operational advantages and the computational effectiveness.

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tags: Demand response (DR), energy and reserve scheduling, virtual power plant (VPP), renewable generation