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Operational Planning and Design of Market-Based Virtual Power Plant with High Penetration of Renewable Energy Sources

1Institute for Globally Distributed Open Research and Education (IGDORE), Cleveland, Middlesbrough, United Kingdom

2University of Bradford, Richmond Rd, Bradford, BD7 1DP, United Kingdom

Received: 5 Feb 2022; Revised: 20 Mar 2022; Accepted: 4 Apr 2022; Available online: 16 Apr 2022; Published: 4 Aug 2022.
Editor(s): Grigorios Kyriakopoulos
Open Access Copyright (c) 2022 The Authors. Published by Centre of Biomass and Renewable Energy (CBIORE)
Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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Renewable energy sources (RESs) are becoming more prevalent as a source of clean energy, and their integration into the power market is speeding up. The fundamental reason for this is the growing global concern about climate change. However, their weather-dependent and uncertain nature raise questions about grid reliability particularly, when photovoltaics (PVs) and wind turbines (WTs) technologies are used. As a result, rationally managing Energy Storage Systems (ESSs) under the virtual power plant (VPP) setting is being encouraged as a way of minimizing the impact of the uncertain nature of renewable energies. A VPP is comparatively a new concept that aggregates the capacities of dispatchable and non-dispatchable energy sources, electrical loads, and energy storage systems for the purpose of improving energy supply and demand imbalance. It enables individual consumers and producers to participate in the power markets. In this study, a new market-based (MB)-VPP operational planning model is designed and developed with the aim to evaluate the optimal active power dispatched by (WT, PV, and ESS) operating in the day-ahead power market to maximize the social welfare (SW) of the market. SW can be described as the maximization of the consumer’s benefit function minus the cost of energy generation. The optimization process was carried out by using a scenario-based approach to model the uncertainties of renewable energy sources (i.e, WTs & PVs) and load demand. The proposed model and method performance is validated by simulation studies on a 16-bus UK generic distribution system (UKGDS). The simulation results reveal that the proposed approach maximizes overall system social welfare. The capacity of total active power dispatched by (WT, PV, and ESS) has a positive impact on the VPP profit maximization. This empirical study could be used as a reference baseline model for other energy services providers interested in conducting similar research in the future.

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Keywords: Climate change; Renewable energy sources; Electricity market; Economic mechanism; Uncertainty modeling; Virtual power plant

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