An Auction-Based Local Market Clearing for Energy Management in a Virtual Power Plant

Abstract

Virtual power plant (VPP) concept creates additional benefits for different stakeholders, such as system operators, distributed energy resources' owners, and aggregators. This article presents an auction-based energy management solution from VPP aggregator point of view. To this end, a network-constrained economic dispatch has been developed taking into account a comprehensive resource portfolio, including the conventional and renewable distributed generations, energy storage units, and flexible loads. The VPP aggregator aims at minimizing its expected costs through optimal dispatch of its own resources as well as purchasing and selling electricity from/to upstream network. To this end, a stochastic programming approach has been employed to consider the generation uncertainty of renewable energy resources as well as day-ahead energy market prices using a set of plausible scenarios. The payments to the prosumers are according to an auction-based pricing method that could be an efficient strategy for the VPP aggregator in order to guarantee fairness among consumers and producers within the VPP. In the auction-based pricing scheme, the electricity price at each local node can be calculated according to the demand and generation in each time slot. The proposed framework is a mixed-integer linear programming problem and solved by the CPLEX solver in the GAMS software. It is noteworthy that the effectiveness of the model has been verified, considering several numerical studies.

Economic scheduling method for voltage‐dependent loads in a power system based on a multitime scale framework

“…n 𝜏,sce i is the gear of the ith discrete device at the 𝜏th moment in the sceth scenario. Constraints ( 7)- (10), as constraints to determine the schedulable period considering the finite number of actions of discrete devices, should also be considered in optimization problem (11). Because the constraint form is the same as described above, we do not describe it again for this problem.…”

“…In view of the possible decrease in voltage adjustable quantities in the case of a heavy load during the flexible use of VDLs, reference [9] adopted distributed voltage control at the connection point of a single load to achieve a balance between benefits and investment and reduce the frequency change caused by wind power generation fluctuations. Other studies considered the influence of the VDLs, utilized the coordination and cooperation characteristics of multivoltage control devices [10], considered a multiobjective day‐ahead market clearing mechanism [10] and assessed the multiobjective optimization of the day‐ahead power market elastic load based on the Pareto frontier [11]. However, in general, a systematic scheduling scheme for flexible use has not been established, and coordination and cooperation at multiple time scales have not been achieved.…”

Multi-Time-Scale Rolling Optimal Scheduling of Virtual Power Plants in Energy and Flexible Ramping Product Markets

“…Based on the three stages of the power market, [4] integrated and analyzed various types of electric vehicle (EV) in the VPP and then proposed an Improved Artificial Bee Colony algorithm to determine the optimal bidding strategy for VPPs. In [5], an auction-based energy management solution was developed with the aim of surplus profit sharing among consumers and producers within the VPP through a nodal marginal pricing mechanism. These studies mainly focus on situations in which the VPP participates in the energy market under a specific time scale.…”

Virtual Power Plant as a Tool for Cost-Reflective Network Charging Tariff

“…A network-constrained stochastic model in auction-based local market clearing is another approach to energy management in a VPP [20]. The model analysed the bills of consumers at different nodes of the network.…”