Risk averse optimal operation of a virtual power plant using two stage stochastic programming

Mohammad Amin Tajeddini, Ashkan Rahimi-Kian and Alireza Soroudi

Energy, 2014, vol. 73, issue C, 958-967

Abstract: VPP (Virtual Power Plant) is defined as a cluster of energy conversion/storage units which are centrally operated in order to improve the technical and economic performance. This paper addresses the optimal operation of a VPP considering the risk factors affecting its daily operation profits. The optimal operation is modelled in both day ahead and balancing markets as a two-stage stochastic mixed integer linear programming in order to maximize a GenCo (generation companies) expected profit. Furthermore, the CVaR (Conditional Value at Risk) is used as a risk measure technique in order to control the risk of low profit scenarios. The uncertain parameters, including the PV power output, wind power output and day-ahead market prices are modelled through scenarios. The proposed model is successfully applied to a real case study to show its applicability and the results are presented and thoroughly discussed.

Keywords: VPP; Two-stage stochastic programming; Risk; CVaR; Scenario based modelling; Uncertainty (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (49)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:73:y:2014:i:c:p:958-967

DOI: 10.1016/j.energy.2014.06.110

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