Optimal bidding strategy for virtual power plant participating in combined electricity and ancillary services market considering dynamic demand response price and integrated consumption satisfaction

Shufan Mei, Qinliang Tan, Yuan Liu, Anupam Trivedi and Dipti Srinivasan

Energy, 2023, vol. 284, issue C

Abstract: The virtual power plant (VPP) plays an important role in managing distributed energy by integrating renewable energy sources, energy storage systems and dispatchable loads. It can not only provide peak regulation services as good flexible resources, but also participate in the electricity market for additional profit. This paper presents a multimarket model to develop an optimal bidding strategy for VPP. To enhance the effectiveness of demand response, a fixed time of use price is converted into a dynamic response price. The integrated consumption satisfaction is quantified from both comfort and economy perspectives. Multi-objective optimization is carried out to maximize market profit of VPP as well as consumer satisfaction. The results show that: (1) Compared to time of use prices, VPP's profit and consumers' satisfaction level increased by 12.46% and 3.26% respectively under dynamic response prices. (2) The increase in the market profit of VPP is accompanied by a gradual decline in integrated consumption satisfaction. There are two inflection points in the process of decline, occurring at satisfaction levels of 1.01 and 0.98 respectively. (3) The multi-objective optimization strategy can achieve a win-win situation for both its operator and the internal consumers.

Keywords: Virtual power plant; Electricity market; Peak regulation market; Demand response; Flexible resources (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544223019862
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:284:y:2023:i:c:s0360544223019862

DOI: 10.1016/j.energy.2023.128592

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().