A distributed VPP-integrated co-optimization framework for energy scheduling, frequency regulation, and voltage support using data-driven distributionally robust optimization with Wasserstein metric

With deepening decarbonization and increased Renewable Energy Sources (RESs) integration, the power system's inertia has declined, affecting the network's ability to balance power at the distribution level. Concurrently, the proliferation of prosumers presents a regulatory opportunity for Distribution System Operators (DSOs), despite the complexity introduced by their high number and varied behaviors. This paper introduces a new co-scheduling model optimizing prosumers' capacities through Virtual Power Plants (VPPs) in local networks, enhancing DSO oversight and facilitating prosumer participation in regulation markets. The proposed model concurrently schedules energy provision alongside voltage and frequency regulation capacities. Recognizing prosumers' behavioral uncertainties, Data-Driven Distributionally Robust Optimization (DDRO) is employed to ensure adequate capacity for VPP engagement. Importantly, the paper outlines a mechanism allowing DSOs to partner with multiple privately-owned VPPs, ensuring privacy through an adaptive Alternative Direction Method of Multipliers (ADMM) method. This method avoids the exchange of sensitive information, ensuring confidentiality and scalability. Consequently, VPPs can proficiently manage scheduling and communicate their regulation capacities. The operator then dispatches control signals based on regulation needs and network flow. Results from the IEEE 33 bus test system confirm the model's efficacy in enhancing voltage support and frequency regulation, and generating revenue for both VPPs and prosumers.