Two-Stage Coordinated Operational Strategy for Distributed Energy Resources Considering Wind Power Curtailment Penalty Cost

Jing Qiu, Junhua Zhao, Dongxiao Wang and Yu Zheng
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Jing Qiu: Commonwealth Scientific and Industrial Research Organization (CSIRO), Mayfield West, Newcastle, NSW 2304, Australia
Junhua Zhao: School of Science and Engineering, Chinese University of Hong Kong (Shenzhen), Shenzhen 518172, China
Dongxiao Wang: Centre for Intelligent Electricity Networks, University of Newcastle, Newcastle, NSW 2308, Australia
Yu Zheng: Electric Power Research Institute, CSG, Guangzhou 510080, China

Energies, 2017, vol. 10, issue 7, 1-19

Abstract: The concept of virtual power plant (VPP) has been proposed to facilitate the integration of distributed renewable energy. VPP behaves similar to a single entity that aggregates a collection of distributed energy resources (DERs) such as distributed generators, storage devices, flexible loads, etc., so that the aggregated power outputs can be flexibly dispatched and traded in electricity markets. This paper presents an optimal scheduling model for VPP participating in day-ahead (DA) and real-time (RT) markets. In the DA market, VPP aims to maximize the expected profit and reduce the risk in relation to uncertainties. The risk is measured by a risk factor based on the mean-variance Markowitz theory. In the RT market, VPP aims to minimize the imbalance cost and wind power curtailment by adjusting the scheduling of DERs in its portfolio. In case studies, the benefits (e.g., surplus profit and reduced wind power curtailment) of aggregated VPP operation are assessed. Moreover, we have investigated how these benefits are affected by different risk-aversion levels and uncertainty levels. According to the simulation results, the aggregated VPP scheduling approach can effectively help the integration of wind power, mitigate the impact of uncertainties, and reduce the cost of risk-aversion.

Keywords: operational planning; wind power curtailment; distributed energy resources; risk management (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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