Optimal Bidding Scheduling of Virtual Power Plants Using a Dual-MILP (Mixed-Integer Linear Programming) Approach under a Real-Time Energy Market

Seung-Jin Yoon, Kyung-Sang Ryu, Chansoo Kim, Yang-Hyun Nam, Dae-Jin Kim () and Byungki Kim ()
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Seung-Jin Yoon: Power Electric System Research Laboratory, Korea Institute of Energy Research, Jeju 63357, Republic of Korea
Kyung-Sang Ryu: Power Electric System Research Laboratory, Korea Institute of Energy Research, Jeju 63357, Republic of Korea
Chansoo Kim: Power Electric System Research Laboratory, Korea Institute of Energy Research, Jeju 63357, Republic of Korea
Yang-Hyun Nam: Power Electric System Research Laboratory, Korea Institute of Energy Research, Jeju 63357, Republic of Korea
Dae-Jin Kim: Power Electric System Research Laboratory, Korea Institute of Energy Research, Jeju 63357, Republic of Korea
Byungki Kim: Power Electric System Research Laboratory, Korea Institute of Energy Research, Jeju 63357, Republic of Korea

Energies, 2024, vol. 17, issue 15, 1-16

Abstract: In recent years, the energy industry has increased the proportion of renewable energy sources, which are sustainable and carbon-free. However, the increase in renewable energy sources has led to grid instability due to factors such as the intermittent power generation of renewable sources, forecasting inaccuracies, and the lack of metering for small-scale power sources. Various studies have been carried out to address these issues. Among these, research on Virtual Power Plants (VPP) has focused on integrating unmanaged renewable energy sources into a unified system to improve their visibility. This research is now being applied in the energy trading market. However, the purpose of VPP aggregators has been to maximize profits. As a result, they have not considered the impact on distribution networks and have bid all available distributed resources into the energy market. While this approach has increased the visibility of renewables, an additional method is needed to deal with the grid instability caused by the increase in renewables. Consequently, grid operators have tried to address these issues by diversifying the energy market. As regulatory method, they have introduced real-time energy markets, imbalance penalty fees, and limitations on the output of distributed energy resources (DERs), in addition to the existing day-ahead market. In response, this paper proposes an optimal scheduling method for VPP aggregators that adapts to the diversifying energy market and enhances the operational benefits of VPPs by using two Mixed-Integer Linear Programming (MILP) models. The validity of the proposed model and algorithm is verified through a case study analysis.

Keywords: optimal scheduling; mixed-integer linear programming; multi-energy market; over-generation; uncertainty of renewable energy sources; virtual power plants (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: 2024
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