Journal of Green Energy Research and Innovation
Quarterly

Scenario-Based Planning of Participation of Virtual Power Plants in Storage and Energy Markets in Terms of Load Response and Market Price Uncertainty

Document Type : Research article

Authors

Hamidreza Hanif 1
Mohammad Zand 2
Morteza Azimi Nasab 3
Seyyed Mohammad Sadegh Ghiasi 4
Sanjeevikumar Padmanaban 5

1 Iran University of Science and Technology (IUST), Tehran, Iran.

2 Young Researcher and Elite Club, Hamedan Branch, Islamic Azad University, Hamedan, Iran.

3 Young Researcher and Elite Club, Borujerd Branch, Islamic Azad University, Borujerd, Iran.

4 Department of Electrical Engineering, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.

5 Department of Electrical Engineering, IT and Cybernetic, University of South-Eastern Norway, 3918 Porsgrunn, Norway.

https://doi.org/10.61186/jgeri.1.3.77
Abstract
Environmental concerns, advancements in the new energy industry, and rising power generation and transmission costs are driving the electricity industry towards innovation. This has led to the installation of distributed energy resources (DERs) in many regions. Virtual power plants (VPPs), which manage decentralized energy systems by aggregating the capacity of various distributed generations (DGs), storage devices, and distributable loads, are used for trading energy and services. The research focuses on the planning of price-based unit commitment (PBUC) managed by VPPs over a 24-hour period. Simulation results demonstrate that the proposed framework effectively develops strategies for VPP market production and consumer interaction, especially with load-shedding capabilities. A key aspect of the study is examining the impact of uncertainties on VPP strategies. Probability density functions and the Monte Carlo method are used to model and assess these uncertainties. Simulations without energy price and demand uncertainties indicate that the model is suitable for strategizing VPP market production and consumer interaction. However, simulations that include market price uncertainties and predicted VPP loads show that VPP profits are influenced by market volatility. Increased price and demand fluctuations significantly affect VPP strategies, sometimes resulting in losses during certain periods.

Graphical Abstract

Scenario-Based Planning of Participation of Virtual Power Plants in Storage and Energy Markets in Terms of Load Response and Market Price Uncertainty

Highlights

 

  • Providing an inertial response for ESS with fast response capability
  • Investigating the effect of inertial response in establishing frequency response and network behavior after sudden events
  • Considering the new model of the problem and applying the novel algorithm for this problem

 

Keywords

Virtual power plants
‎Storage and energy ‎markets
Combined heat and power
Price uncertainty

Declaration of Competing Interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper. The ethical issues, including plagiarism, informed consent, misconduct, data fabrication and/or falsification, double publication and/or submission, redundancy, have been completely observed by the authors.

Credit Authorship Contribution Statement

Hamid Reza Hanif‎: Conceptualization, Data curation, Methodology, Software, Roles/Writing - original draft. ‎ Mohammad Zand‎: Conceptualization, Formal analysis, Methodology, Project administration, Roles/Writing - original draft. Morteza Azimi Nasab: Conceptualization, Formal analysis, Methodology, Software. Seyyed Mohammad Sadegh Ghiasi‎: Resources, Validation, Roles/Writing - original draft. ‎ Sanjeevikumar Padmanaban: Conceptualization, Methodology, Supervision.

 

Bibliography

 Hamid Reza Hanif ‎ received his B.Sc. and M.Sc. and PHD degrees in Electrical Power Engineering from Iran University ‎of Science and Technology, Iran Tehran in 2014 and 2019 and 2023 respectively. He has authored ‎and co-authored more than 15 papers in international journals and conferences. He has also ‎published a book and co-authored some book chapters. His main research interests include ‎renewable energy, technologies, Microgrids, Power System Planning, Power Systems, Smart grids, ‎Electric vehicles, and fault location‎.

 Mohammad Zand ‎ received his B.Sc. and M.Sc. and Ph.D. degrees in Electrical Power Engineering from Islamic Azad ‎University, Tehran Branch, Tehran, Iran, in 2013 and 2016 and 2022 respectively. He has authored ‎and co-authored more than 75 scientific papers in international journals and conferences. His main research interests include ‎renewable energy technologies, Microgrids, Power System Planning Power System, smart grids, ‎electric vehicles, and fault location. Since June 2018, he has been a reviewer and Editorial Board ‎Member of several high-quality journals‎.

 Morteza Azimi Nasab ‎ ‎(Member, IEEE) received the B.Sc. and M.Sc. degrees in electrical power engineering from Islamic Azad University, Tehran Branch, ‎Tehran, Iran, in 2014 and 2017, respectively. He is currently a University Lecturer with the University of Applied Sciences and ‎Technology, Tehran, and an External Researcher with the Department of Electrical Engineering, Information Technology and ‎Cybernetic, University of South-Eastern Norway, Norway. He has authored or co-authored more than 25 scientific papers in ‎international journals and conferences. He has also published a book and co-authored ten book chapters. His main research interests ‎include renewable energy technologies, partial shaded PV, MPPT algorithms, smart cities, smart grids, electric vehicles, and fault ‎location. Since June 2020, he has been a reviewer of several high-quality journals‎.

 Seyyed Mohammad Sadegh Ghiasi ‎ was born in Iran, in 1984. He received the B.Sc. degree in electrical engineering from Tehran ‎Polytechnic, in 2007, the M.Sc. degree from the Electrical Engineering Department, Iran ‎University of Science and Technology, in 2010, and the Ph.D. degree in power system from ‎Tehran Polytechnic, in 2019. His main researches interests include restructuring and ‎deregulation in power systems, power quality, and transients in power systems.

 Sanjeevikumar Padmanaban‎ ‎(Senior Member, IEEE) received the Ph.D. degree in electrical engineering from the University of Bologna, Bologna, Italy, in 2012. ‎He is a Full Professor in Electrical Power Engineering with the Department of Electrical Engineering, Information Technology, and ‎Cybernetics, University of South-Eastern Norway, Norway. He has authored over 750+ scientific papers. He is a Fellow of the ‎Institution of Engineers, India, the Institution of Electronics and Telecommunication Engineers, India, and the Institution of ‎Engineering and Technology, U.K. He received a lifetime achievement award from Marquis Who’s Who - USA 2017 for ‎contributing to power electronics and renewable energy research. He is listed among the world’s top 2 scientists (from 2019) by ‎Stanford University USA. He received the Best Paper cum Most Excellence Research Paper Award from IET-SEISCON’13, IET-‎CEAT’16, IEEE-EECSI’19, IEEE-CENCON’19, and five best paper awards from ETAEERE’16 sponsored Lecture Notes in ‎Electrical Engineering, Springer book. He is an Editor/Associate Editor/Editorial Board for refereed journals, in particular the IEEE ‎Systems Journal, IEEE Transaction on Industry Applications, IEEE Access, 83750 VOLUME 11, 2023A. Sagar et al.: Comprehensive ‎Review of the Recent Development of WPT Technologies IET Power Electronics, IET Electronics Letters, and Wiley-International ‎Transactions on Electrical Energy Systems, Subject Editorial Board Member–Energy Sources–Energies Journal, MDPI, and the ‎Subject Editor for the IET Renewable Power Generation, IET Generation, Transmission and Distribution, and FACETS Journal ‎‎(Canada). Dr. Padmanaban is a fellow of the Institution of Engineers, India, the Institution of Electronics and Telecommunication ‎Engineers, India, and the Institution of Engineering and Technology, U.K. He received the Best Paper cum Most Excellence ‎Research Paper Award from IET-SEISCON 2013, IETCEAT 2016, IEEE-EECSI 2019, and IEEE-CENCON 2019, and five best ‎paper awards from ETAEERE 2016 sponsored Lecture Notes in Electrical Engineering, Springer book. He received the Lifetime ‎Achievement Award from Marquis Who’s Who-USA 2017 for contributing to power electronics and renewable energy research. He ‎is listed among the world’s top 2% scientists (since 2019) by Stanford University, USA.‎

 

Citation

H. Hanif, M. Zand‎, M. Azimi Nasab‎, S. M. S. Ghiasi‎, and S. Padmanaban‎,"Scenario-Based Planning of Participation of Virtual Power Plants in Storage and ‎Energy Markets in Terms of Load Response and Market Price Uncertainty," Journal of Green Energy Research and Innovation, vol. 1, no. 3, pp. 77-95, 2024.

  1. M. S. Kumar, S. Singh, et al., "Solar Energy: a Promising Renewable Source for Meeting Energy Demand in Indian Agriculture Applications," Sustainable Energy Technologies and Assessments, vol. 55, pp. 102905, 2023.
  2. A. Østergaard, N. Duic, Y. Noorollahi, and S. Kalogirou, "Renewable Energy for Sustainable Development," Renewable Energy, vol. 199, pp. 1145-1152, 2022.
  3. K. G. Deshmukh, M. Sameeroddin, D. Abdul, and M. A. Sattar, "Renewable Energy in the 21st Century: a Review," Materials Today: Proceedings, vol. 80, pp.1756-1759, 2023.
  4. Zhang, C. Jiang, X. Wang, B. Li, and H. Zhu, "Bidding Strategy Analysis of Virtual Power Plant Considering Demand Response and Uncertainty of Renewable Energy," IET Generation, Transmission & Distribution, vol. 11, no. 13, pp. 3268-3277, 2017.
  5. M. Nosratabadi, R. Hooshmand, and E. Gholipour, "A Comprehensive Review on Microgrid and Virtual Power Plant Concepts Employed for Distributed Energy Resources Scheduling in Power Systems," Renewable and Sustainable Energy Reviews, vol. 67, pp. 341-363, 2017.
  6. Piao, M. De Weerd, and L. De Vries, "Electricity Market Design Requirements for DC Distribution Systems," IEEE Second International Conference on DC Microgrids (ICDCM), pp. 95-101, 2017.
  7. Yang, S. He, Q. Chen, D. Li, and H. Pandzic, "Bidding Strategy of a Virtual Power Plant Considering Carbon-Electricity Trading," CSEE Journal of Power and Energy Systems,vol. 5, no. 3, pp. 306-314, 2019.
  8. Naval, R. Sánchez, and J. M. Yusta, "A Virtual Power Plant Optimal Dispatch Model with Large and Small-Scale Distributed Renewable Generation," Renewable Energy, vol. 151, pp. 57-69, 2020.
  9. Liu, J. Li, Y. Xiang, X. Zhang, and W. Jiang, "Optimal Sizing of Cascade Hydropower and Distributed Photovoltaic Included Virtual Power Plant Considering Investments and Complementary Benefits in Electricity Markets," Energies, vol. 12, no. 5, pp. 952, 2019.
  10. Ninagawa, "Virtual Power Plant System Integration Technology", Springer, 2022.
  11. K. Effatpanah, M. H. Ahmadi, et al., "Comparative Analysis of Five Widely-Used Multi-Criteria Decision-Making Methods to Evaluate Clean Energy Technologies: A Case Study," Sustainability, vol. 14, no. 3, 1403, 2022.
  12. H. Abbasi, M. Taki, A. Rajabi, L. Li, and J. Zhang, "Coordinated Operation of Electric Vehicle Charging and Wind Power Generation as a Virtual Power Plant: A Multi-Stage Risk Constrained Approach." Applied Energy, vol. 239, pp. 1294-1307, 2019.
  13. M. Gharavanlou, S. Nojavan, and K. Zareh, "Energy Management of Virtual Power Plant to Participate in the Electricity Market using Robust Optimization," Journal of Operation and Automation in Power Engineering, vol. 8, no. 1, pp. 43-56, 2020.
  14. B, Moreno, and G. Díaz. "The Impact of Virtual Power Plant Technology Composition on Wholesale Electricity Prices: A Comparative Study of Some European Union Electricity Markets," Renewable and Sustainable Energy Reviews, vol. 99, pp. 100-108, 2019.
  15. Ö. P. Akkaş, and E. Çam, "Optimal Operation of Virtual Power Plant in a Day Ahead Market," 3rd International Symposium on Multidisciplinary Studies and Innovative Technologies (ISMSIT), pp. 1-4, 2019.
  16. N. Duc, and N. N. Hong, "A Study on the Bidding Strategy of the Virtual Power Plant in Energy and Reserve Market," Energy Reports, vol. 6, pp. 622-626, 2020.
  17. Tan, W. Fan, et al., "Dispatching Optimization Model of Gas-Electricity Virtual Power Plant Considering Uncertainty Based on Robust Stochastic Optimization Theory," Journal of Cleaner Production,vol. 247, 119106, 2020.
  18. Aldegheishem, R. Bukhsh, N. Alrajeh, and N. Javaid, "Faavpp: Fog as a Virtual Power Plant Service for Community Energy Management," Future Generation Computer Systems,vol. 105, pp. 675-683, 2020.
  19. Alahyari, M. Ehsan, and M. Moghimi, "Managing Distributed Energy Resources (DERs) Through Virtual Power Plant Technology (VPP): A Stochastic Information-Gap Decision Theory (IGDT) Approach." Iranian Journal of Science and Technology, Transactions of Electrical Engineering, vol. 44, pp. 279-291, 2020.
  20. Natarajan, and A. Kolobov, "Planning with Markov Decision Processes: an AI Perspective," Springer Nature, 2022.
  21. Wozabal, and G. Rameseder. "Optimal Bidding of a Virtual Power Plant on the Spanish Day-Ahead and Intraday Market for Electricity," European Journal of Operational Research,vol. 280, no. 2, pp. 639-655, 2020.
  22. Yin, Q. Ai, Z. Li, Y. Zhang, and T. Lu, "Energy Management for Aggregate Prosumers in a Virtual Power Plant: A Robust Stackelberg Game Approach," International Journal of Electrical Power & Energy Systems,vol. 117, 105605, 2020.
  23. Borisoot, R. Liemthong, C. Srithapon, and R. Chatthaworn, "Optimal Energy Management for Virtual Power Plant Considering Operation and Degradation Costs of Energy Storage System and Generators," Energies, vol. 16, no. 6, 2862, 2023.
  24. Lin, X. Guan, et al., "Deep Reinforcement Learning for Economic Dispatch of Virtual Power Plant in Internet of Energy," IEEE Internet of Things Journal, vol. 7, no. 7, pp. 6288-6301, 2020.
  25. Xiao, D. Sutanto, K. M. Muttaqi, and M. Zhang, "Multi-Period Data Driven Control Strategy for Real-Time Management of Energy Storages in Virtual Power Plants Integrated with Power Grid," International Journal of Electrical Power & Energy Systems,vol. 118, 105747, 2020.
  26. Shahidehpour, H. Yamin, and Z. Li, " Market Operations in Electric Power Systems: Forecasting, Scheduling, and Risk Management, John Wiley & Sons, 2002.
  27. Mashhour, and S. M. Moghadas-Tafreshi, "Bidding Sterategy of Virual Power Plant for Participating in Energy and Spinning Reserve Market—Part II: Numerical Analysis," IEEE Transactions on Power Systems, vol. 26, no. 2, pp. 957-964, 2010.
  28. Vahidianasab, and S. Jadid, "Stochastic Multi objective Self-Scheduling of a Power Producer in Joint Energy and Reserves Markets," Electric Power Systems Research, vol. 80, no. 7, pp. 760-769, 2010.
Journal of Green Energy Research and Innovation
Volume 1, Issue 3
Summer 2024
Pages 77-95

  • Receive Date 29 December 2023
  • Revise Date 06 February 2024
  • Accept Date 26 February 2024
  • Publish Date 01 September 2024

Home

Guide for Authors

Submit Manuscript

Reviewers

Contact Us