Cooperative operation for multiple virtual power plants considering energy-carbon trading: A Nash bargaining model

Jinye Cao, Dechang Yang and Payman Dehghanian

Energy, 2024, vol. 307, issue C

Abstract: With the development of the energy and carbon markets, it has become a trend for multiple virtual power plants (MVPP) that aggregate distributed resources from different regions to participate in market trading through cooperative operation. In order to study the energy-carbon interactions between VPPs and the supply-demand interactions for MVPP and users, this paper introduces a load aggregator (LA) and establishes a cooperative alliance consisting of MVPP and LA. Firstly, a carbon emission allowance allocation and transaction mechanism for MVPP is proposed based on the modified Shapley value method, which considers the impact of energy interactions within the alliance on the carbon emissions. Then, a cooperation model for the MVPP-LA alliance is established based on Nash bargaining theory, and it is decomposed into two subproblems of the maximal alliance benefits and the optimal benefit distribution. In terms of benefit distribution, this paper modifies the bargaining mechanism based on the contribution of each VPP to the alliance benefit. A dynamic penalty factor-based alternating direction method of multipliers (DP-ADMM) is used to solve the two subproblems in a distributed manner. Finally, the validity of the proposed trading mechanism, allocation method and solution algorithm are verified through several cases.

Keywords: Virtual power plant; Load aggregator; Cooperative operation; Energy trading; Carbon trading; Nash bargaining (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:307:y:2024:i:c:s0360544224025878

DOI: 10.1016/j.energy.2024.132813

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