Optimal Bidding Capacity of Virtual Power Plant Incorporating Power-to-X Resources on Day-Ahead Energy Market

Kyeong-Hee Cho (), Hyung-Chul Jo, Wanbin Son, Soon-Young Kwon and Gilsung Byeon
Additional contact information
Kyeong-Hee Cho: Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea
Hyung-Chul Jo: Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea
Wanbin Son: Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea
Soon-Young Kwon: Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea
Gilsung Byeon: Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea

Energies, 2025, vol. 18, issue 5, 1-18

Abstract: Sector coupling technology, which is also called power-to-X (P2X) technology, refers to the conversion of renewable energy system (RES) outputs into various forms of energy, enhancing the utility of RESs and facilitating the development of sustainable energy systems. However, given the diverse characteristics of different P2X systems, the effective integration and operation of P2X resources are critical. This study aimed to propose a method for optimizing bidding capacities in power generation projects by integrating various P2X resources—including power-to-mobility, power-to-gas, and power-to-heat—as well as energy storage system (ESS) resources to improve flexibility and stabilize output. This study modeled the diverse characteristics of P2X resources and established objective functions and constraints. The optimization method for the integrated operational plan was developed using mixed integer linear programming. The results demonstrate that by considering the specific characteristics of each P2X and ESS resource, optimal resource allocation could effectively mitigate the variability of RES output and determine feasible bidding capacities. The proposed method is expected to contribute to mitigating RES variability, advancing sustainable energy transitions, reducing greenhouse gas emissions, and enhancing the flexibility of power systems.

Keywords: renewable energy system; energy storage system; power-to-X; power-to-mobility; power-to-heat; power-to-gas; power-to-X modeling; portfolio optimization; renewable energy variability (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: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/18/5/1309/pdf (application/pdf)
https://www.mdpi.com/1996-1073/18/5/1309/ (text/html)

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:gam:jeners:v:18:y:2025:i:5:p:1309-:d:1607090

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().