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A multi-stage stochastic programming model for the unit commitment of conventional and virtual power plants bidding in the day-ahead and ancillary services markets

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  • Fusco, Andrea
  • Gioffrè, Domenico
  • Francesco Castelli, Alessandro
  • Bovo, Cristian
  • Martelli, Emanuele

Abstract

As more uncontrollable renewable energy sources are present in the power generation portfolio, the need of more detailed and reliable tools for the optimal operation of energy systems has increased in the last years. This work presents a multi-stage stochastic Mixed Integer Linear Program with binary recourse for optimizing the day-ahead unit commitment of power plants and virtual power plants operating in the day-ahead and ancillary services markets. Scenarios reproduce the uncertainty of the ancillary services market requests, and production of photovoltaic panels. A novel decomposition algorithm is proposed to tackle the challenging multistage stochastic program. The methodology is tested on three types of large power plants: a natural gas-fired combined cycle, a combined heat and power combined cycle with thermal storage, and a virtual power plant integrating a combined cycle with battery and photovoltaic fields. Compared to the typical deterministic unit commitment approach, the proposed stochastic optimization approach allows to increase the revenues of the conventional power plant up to 13.58% and, for the combined heat and power and virtual power plant case, it allows finding a feasible and efficient operational scheduling.

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  • Fusco, Andrea & Gioffrè, Domenico & Francesco Castelli, Alessandro & Bovo, Cristian & Martelli, Emanuele, 2023. "A multi-stage stochastic programming model for the unit commitment of conventional and virtual power plants bidding in the day-ahead and ancillary services markets," Applied Energy, Elsevier, vol. 336(C).
    • Handle: RePEc:eee:appene:v:336:y:2023:i:c:s0306261923001034
    DOI: 10.1016/j.apenergy.2023.120739
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    3. Dong, Jizhe & Li, Yuanhan & Zuo, Shi & Wu, Xiaomei & Zhang, Zuyao & Du, Jiang, 2023. "An intraperiod arbitrary ramping-rate changing model in unit commitment," Energy, Elsevier, vol. 284(C).
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    5. Mei, Shufan & Tan, Qinliang & Liu, Yuan & Trivedi, Anupam & Srinivasan, Dipti, 2023. "Optimal bidding strategy for virtual power plant participating in combined electricity and ancillary services market considering dynamic demand response price and integrated consumption satisfaction," Energy, Elsevier, vol. 284(C).
    6. Li, Ningning & Gao, Yan, 2023. "Real-time pricing based on convex hull method for smart grid with multiple generating units," Energy, Elsevier, vol. 285(C).
    7. Silva-Rodriguez, Lina & Sanjab, Anibal & Fumagalli, Elena & Gibescu, Madeleine, 2024. "Light robust co-optimization of energy and reserves in the day-ahead electricity market," Applied Energy, Elsevier, vol. 353(PA).
    8. Jiang, Yuzheng & Dong, Jun & Huang, Hexiang, 2024. "Optimal bidding strategy for the price-maker virtual power plant in the day-ahead market based on multi-agent twin delayed deep deterministic policy gradient algorithm," Energy, Elsevier, vol. 306(C).
    9. Ju, Liwei & Lv, ShuoShuo & Zhang, Zheyu & Li, Gen & Gan, Wei & Fang, Jiangpeng, 2024. "Data-driven two-stage robust optimization dispatching model and benefit allocation strategy for a novel virtual power plant considering carbon-green certificate equivalence conversion mechanism," Applied Energy, Elsevier, vol. 362(C).
    10. Siddique, Muhammad Bilal & Keles, Dogan & Scheller, Fabian & Nielsen, Per Sieverts, 2024. "Dispatch strategies for large-scale heat pump based district heating under high renewable share and risk-aversion: A multistage stochastic optimization approach," Energy Economics, Elsevier, vol. 136(C).
    11. Jiaqi Liu & Hongji Hu & Samson S. Yu & Hieu Trinh, 2023. "Virtual Power Plant with Renewable Energy Sources and Energy Storage Systems for Sustainable Power Grid-Formation, Control Techniques and Demand Response," Energies, MDPI, vol. 16(9), pages 1-28, April.
    12. La Fata, Alice & Brignone, Massimo & Procopio, Renato & Bracco, Stefano & Delfino, Federico & Barbero, Giulia & Barilli, Riccardo, 2024. "An energy management system to schedule the optimal participation to electricity markets and a statistical analysis of the bidding strategies over long time horizons," Renewable Energy, Elsevier, vol. 228(C).
    13. Esfahani, Moein & Alizadeh, Ali & Amjady, Nima & Kamwa, Innocent, 2024. "A distributed VPP-integrated co-optimization framework for energy scheduling, frequency regulation, and voltage support using data-driven distributionally robust optimization with Wasserstein metric," Applied Energy, Elsevier, vol. 361(C).

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