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Optimal Bidding Capacity of Virtual Power Plant Incorporating Power-to-X Resources on Day-Ahead Energy Market

Author

Listed:
  • Kyeong-Hee Cho

    (Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea)

  • Hyung-Chul Jo

    (Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea)

  • Wanbin Son

    (Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea)

  • Soon-Young Kwon

    (Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea)

  • Gilsung Byeon

    (Energy Platform Research Center, Korea Electrotechnology Research Institute, 27, Dosichemdansaneop-ro, Nam-gu, Gwangju 61751, Republic of Korea)

Abstract

Sector coupling technology, which is also called power-to-X (P2X) technology, refers to the conversion of renewable energy system (RES) outputs into various forms of energy, enhancing the utility of RESs and facilitating the development of sustainable energy systems. However, given the diverse characteristics of different P2X systems, the effective integration and operation of P2X resources are critical. This study aimed to propose a method for optimizing bidding capacities in power generation projects by integrating various P2X resources—including power-to-mobility, power-to-gas, and power-to-heat—as well as energy storage system (ESS) resources to improve flexibility and stabilize output. This study modeled the diverse characteristics of P2X resources and established objective functions and constraints. The optimization method for the integrated operational plan was developed using mixed integer linear programming. The results demonstrate that by considering the specific characteristics of each P2X and ESS resource, optimal resource allocation could effectively mitigate the variability of RES output and determine feasible bidding capacities. The proposed method is expected to contribute to mitigating RES variability, advancing sustainable energy transitions, reducing greenhouse gas emissions, and enhancing the flexibility of power systems.

Suggested Citation

  • Kyeong-Hee Cho & Hyung-Chul Jo & Wanbin Son & Soon-Young Kwon & Gilsung Byeon, 2025. "Optimal Bidding Capacity of Virtual Power Plant Incorporating Power-to-X Resources on Day-Ahead Energy Market," Energies, MDPI, vol. 18(5), pages 1-18, March.
  • Handle: RePEc:gam:jeners:v:18:y:2025:i:5:p:1309-:d:1607090
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