Optimal Operation Strategy for Virtual Power Plant Considering Regulation Market and External Demand Response

doi:10.11930/j.issn.1004-9649.202309024

Abstract

Abstract:

The participation of virtual power plant (VPP) in power grid demand response has become an important means for peak load shaving in new power system. It is critical to consider how to improve the profitability of VPPs in the electricity market. Therefore, This paper proposes an optimal operation strategy for VPP considering regulation market and external demand response. Firstly, the regulation market (RM) and demand response exchange market (DRXM) models are established. Secondly, considering the flexibility of external demand response (EDR), an operation decision framework is established for VPP with EDR to participate in the day-ahead and regulation market. Acting as an aggregator of multiple EDR suppliers, the DRXM provides EDR services to VPP to reduce the imbalance penalty of RM and to improve the economy of VPP. And then, a two-level VPP optimization operation model is established. In the upper level, the VPP maximizes its profits through participating in DRXM to reduce the RM penalty; in the lower level, the distribution system operator minimizes its operating cost through cleaning up the day-ahead market and regulation market deviation. The KKT conditions are used to transform the optimization model into a linear single-layer problem for solution. Finally, the improved IEEE 33-node distribution network system is used for case study, which verifies the effectiveness of the proposed optimal operation strategy in improving the VPP’s benefit ability and the effects of different EDR service ratios on VPP decision-making.

Key words: demand response, virtual power plant, regulation market, KKT condition, two level problem

Weiliang HUANG, Zhipeng SU, Xinyi LIANG, Tao CHEN, Li WANG, Liang ZHOU. Optimal Operation Strategy for Virtual Power Plant Considering Regulation Market and External Demand Response[J]. Electric Power, 2023, 56(12): 156-163.

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URL: https://www.electricpower.com.cn/EN/10.11930/j.issn.1004-9649.202309024

https://www.electricpower.com.cn/EN/Y2023/V56/I12/156

Figures/Tables 9

Fig.1 The decision-making framework for the VPP to participate in the DRXM and the RM

Fig.2 The IEEE 33-bus distribution system

Fig.3 Forecasted load and wind power of the VPP

Fig.4 Forecasted up and down RM prices

Fig.5 Clearing price in the day-ahead market

Fig.6 Clearing power in the day-ahead market

Fig.7 Energy transaction in the RM

Fig.8 VPP's energy state with EDR=0.6

Fig.9 Energy transaction of the VPP in the DRXM under different levels of EDR services

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