IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v200y2017icp273-289.html
   My bibliography  Save this article

An interactive cooperation model for neighboring virtual power plants

Author

Listed:
  • Shabanzadeh, Morteza
  • Sheikh-El-Eslami, Mohammad-Kazem
  • Haghifam, Mahmoud-Reza

Abstract

Future distribution systems will accommodate an increasing share of distributed energy resources (DERs). Facing with this new reality, virtual power plants (VPPs) play a key role to aggregate DERs with the aim of facilitating their involvement in wholesale electricity markets. In this paper, the trading strategies of a VPP in cooperation with its neighboring VPPs are addressed. Toward this aim, a portfolio of inter-regional contracts is considered to model this cooperation and maximize the energy trade opportunities of the VPP within a medium-term horizon. To hedge against profit variability caused by market price uncertainties, two efficient risk management approaches are also implemented in the VPP decision-making problem based on the concepts of conditional value at risk (CVaR) and second-order stochastic dominance constraints (SSD). The resulting models are formulated as mixed-integer linear programming (MILP) problems that can be solved using off-the-shelf software packages. The efficiency of the proposed risk-hedging models is analyzed through a detailed case study, and thereby relevant conclusions are drawn.

Suggested Citation

  • Shabanzadeh, Morteza & Sheikh-El-Eslami, Mohammad-Kazem & Haghifam, Mahmoud-Reza, 2017. "An interactive cooperation model for neighboring virtual power plants," Applied Energy, Elsevier, vol. 200(C), pages 273-289.
    • Handle: RePEc:eee:appene:v:200:y:2017:i:c:p:273-289
    DOI: 10.1016/j.apenergy.2017.05.066
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261917305615
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2017.05.066?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amit Kumer Podder & Sayemul Islam & Nallapaneni Manoj Kumar & Aneesh A. Chand & Pulivarthi Nageswara Rao & Kushal A. Prasad & T. Logeswaran & Kabir A. Mamun, 2020. "Systematic Categorization of Optimization Strategies for Virtual Power Plants," Energies, MDPI, vol. 13(23), pages 1-46, November.
    2. Mahmud, Khizir & Khan, Behram & Ravishankar, Jayashri & Ahmadi, Abdollah & Siano, Pierluigi, 2020. "An internet of energy framework with distributed energy resources, prosumers and small-scale virtual power plants: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    3. Natalia Naval & Jose M. Yusta, 2020. "Water-Energy Management for Demand Charges and Energy Cost Optimization of a Pumping Stations System under a Renewable Virtual Power Plant Model," Energies, MDPI, vol. 13(11), pages 1-21, June.
    4. Qiu, Dawei & Baig, Aimon Mirza & Wang, Yi & Wang, Lingling & Jiang, Chuanwen & Strbac, Goran, 2024. "Market design for ancillary service provisions of inertia and frequency response via virtual power plants: A non-convex bi-level optimisation approach," Applied Energy, Elsevier, vol. 361(C).
    5. Guoqiang Sun & Weihang Qian & Wenjin Huang & Zheng Xu & Zhongxing Fu & Zhinong Wei & Sheng Chen, 2019. "Stochastic Adaptive Robust Dispatch for Virtual Power Plants Using the Binding Scenario Identification Approach," Energies, MDPI, vol. 12(10), pages 1-23, May.
    6. Yu, Songyuan & Fang, Fang & Liu, Yajuan & Liu, Jizhen, 2019. "Uncertainties of virtual power plant: Problems and countermeasures," Applied Energy, Elsevier, vol. 239(C), pages 454-470.
    7. Yoo, Yoon-Sik & Newaz, S.H. Shah & Shannon, Peter David & Lee, Il-Woo & Choi, Jun Kyun, 2018. "Towards improving throughput and reducing latency: A simplified protocol conversion mechanism in distributed energy resources network," Applied Energy, Elsevier, vol. 213(C), pages 45-55.
    8. Naval, Natalia & Sánchez, Raul & Yusta, Jose M., 2020. "A virtual power plant optimal dispatch model with large and small-scale distributed renewable generation," Renewable Energy, Elsevier, vol. 151(C), pages 57-69.
    9. Wang, Xuebin & Chang, Jianxia & Meng, Xuejiao & Wang, Yimin, 2018. "Short-term hydro-thermal-wind-photovoltaic complementary operation of interconnected power systems," Applied Energy, Elsevier, vol. 229(C), pages 945-962.
    10. Guo, Hongye & Chen, Qixin & Xia, Qing & Kang, Chongqing, 2019. "Electricity wholesale market equilibrium analysis integrating individual risk-averse features of generation companies," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    11. Ju, Liwei & Zhao, Rui & Tan, Qinliang & Lu, Yan & Tan, Qingkun & Wang, Wei, 2019. "A multi-objective robust scheduling model and solution algorithm for a novel virtual power plant connected with power-to-gas and gas storage tank considering uncertainty and demand response," Applied Energy, Elsevier, vol. 250(C), pages 1336-1355.
    12. Rakshith Subramanya & Matti Yli-Ojanperä & Seppo Sierla & Taneli Hölttä & Jori Valtakari & Valeriy Vyatkin, 2021. "A Virtual Power Plant Solution for Aggregating Photovoltaic Systems and Other Distributed Energy Resources for Northern European Primary Frequency Reserves," Energies, MDPI, vol. 14(5), pages 1-23, February.
    13. Marcjasz, Grzegorz & Narajewski, Michał & Weron, Rafał & Ziel, Florian, 2023. "Distributional neural networks for electricity price forecasting," Energy Economics, Elsevier, vol. 125(C).
    14. Zhou, Kaile & Peng, Ning & Yin, Hui & Hu, Rong, 2023. "Urban virtual power plant operation optimization with incentive-based demand response," Energy, Elsevier, vol. 282(C).
    15. Alam, Khandoker Shahjahan & Kaif, A.M.A. Daiyan & Das, Sajal K., 2024. "A blockchain-based optimal peer-to-peer energy trading framework for decentralized energy management with in a virtual power plant: Lab scale studies and large scale proposal," Applied Energy, Elsevier, vol. 365(C).
    16. Zahid Ullah & Arshad & Jawad Ahmad, 2022. "The Development of a Cross-Border Energy Trade Cooperation Model of Interconnected Virtual Power Plants Using Bilateral Contracts," Energies, MDPI, vol. 15(21), pages 1-16, November.
    17. Luo, Zhe & Hong, SeungHo & Ding, YueMin, 2019. "A data mining-driven incentive-based demand response scheme for a virtual power plant," Applied Energy, Elsevier, vol. 239(C), pages 549-559.
    18. Zhengwei Huang & Lu Liu & Jiachang Liu, 2023. "Multi-Time-Scale Coordinated Optimum Scheduling Technique for a Multi-Source Complementary Power-Generating System with Uncertainty in the Source-Load," Energies, MDPI, vol. 16(7), pages 1-22, March.
    19. Bianca Goia & Tudor Cioara & Ionut Anghel, 2022. "Virtual Power Plant Optimization in Smart Grids: A Narrative Review," Future Internet, MDPI, vol. 14(5), pages 1-22, April.
    20. Naval, Natalia & Yusta, Jose M., 2021. "Virtual power plant models and electricity markets - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    21. Shaw-Williams, Damian & Susilawati, Connie, 2020. "A techno-economic evaluation of Virtual Net Metering for the Australian community housing sector," Applied Energy, Elsevier, vol. 261(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:200:y:2017:i:c:p:273-289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.