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Bi-level strategic bidding model of novel virtual power plant aggregating waste gasification in integrated electricity and hydrogen markets

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  • Jia, Dongqing
  • Li, Xingmei
  • Gong, Xu
  • Lv, Xiaoyan
  • Shen, Zhong

Abstract

Aggregating a waste gasification unit with renewable energy sources (RES) into a virtual power plant (VPP) not only effectively reduces the negative impacts of renewable energy sources and improves the performance of VPP in the electricity market, but also participates in the hydrogen market by purifying the hydrogen in the syngas produced after gasification. A market bidding strategy that improves the profitability of the system is the basis for sustainable VPP. Based on this, this paper for the first time aggregates a waste gasification unit with RES into a VPP named WtE-VPP. Then, considering that the WtE-VPP system can generate both electricity and hydrogen and their outputs affect each other, this paper constructs a bi-level bidding strategy model for the combined electricity‑hydrogen market. The lower-level model aims to minimize the total social costs of the electricity and hydrogen markets, while the upper-level model aims to maximize the profits of WtE-VPP. Finally, the model is tested on an improved PJM 5-node grid with a 7-node hydrogen network, and the results show that the method is effective in reflecting strategic behaviors of WtE-VPP. Compared to participation in a single electricity market, the total benefits of WtE-VPP participation in both electricity and hydrogen markets increase by 39.18%.

Suggested Citation

  • Jia, Dongqing & Li, Xingmei & Gong, Xu & Lv, Xiaoyan & Shen, Zhong, 2024. "Bi-level strategic bidding model of novel virtual power plant aggregating waste gasification in integrated electricity and hydrogen markets," Applied Energy, Elsevier, vol. 357(C).
    • Handle: RePEc:eee:appene:v:357:y:2024:i:c:s0306261923018329
    DOI: 10.1016/j.apenergy.2023.122468
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