Considering the Uncertainty of Renewable Energy: Bidding Strategy for Virtual Power Plants in the Monthly Centralized Market
DOI:
https://doi.org/10.13052/spee1048-5236.4422Keywords:
Virtual power plant (VPP), high-low matching, monthly centralized market, maximization of social welfareAbstract
The execution of the energy transition and “dual carbon” objectives is progressively enhancing the penetration rate of renewable energy in the new power system. This paper examines the bidding strategy for virtual power plants (VPPs) incorporating renewable energy within the rolling trading framework of the mid-to-long-term centralised electricity market, in response to the challenges posed by power generation uncertainty and market-driven consumption due to large-scale renewable energy integration. An outer clearing model is developed to enable VPP participation, with the objective of maximising societal welfare, hence determining transaction volumes and clearing prices. Subsequently, taking into account the predicting inaccuracies of wind and solar energy, an internal optimisation model is formulated with the aim of maximising the income of the Virtual Power Plant (VPP), therefore measuring the incremental revenue. A dual-layer optimisation model appropriate for Virtual Power Plant (VPP) participation is developed and subsequently utilised to analyse the optimised bidding strategies for VPPs in the medium to long-term monthly centralised market.
Downloads
References
Jiang Yunpeng, Ren Zhouyang, Li Qiuyan, Guo Yong, Xu Yan. An Accommodation Strategy for Renewable Energy in Distribution Network Considering Coordinated Dispatching of Multi-Flexible Resources[J]. Transactions of China Electrotechnical Society, 2022, 37(07):1820–1835.
Y. Meng et al., The real cost of deep peak shaving for renewable energy accommodation in coal-fired power plants: Calculation framework and case study in China. Journal of Cleaner Production, vol. 367, p. 132913, 2022/09/20/ 2022.
National Energy Administration. Announcement on Public Solicitation of Opinions on the “Guiding Opinions of the National Development and Reform Commission and the National Energy Administration on Carrying Out the Integration of Wind, Solar, Hydro, and Energy Storage” (Draft for Soliciting Opinions) [EB/OL]. [2020-08-27].
National Energy Administration. Notice on Issuing the “2023 Energy Work Guidance” [EB/OL].[2023-04-06].
Cheng Guang, Xu Fei, Hu Bo, Hao Ling, Chen Lei, Zhou Guiping, Min Yong. Synergistic Performance and Combination Design of Coupling of Renewable Energy and Thermal Power[J]. Power System Technology, 2021, 45(06):2178–2191.
Ma Chunyan, Dong Chunfa, LÃ14
Zhipeng, Duan Qing, Wang Kunyu, Ai Xin, Li Yuling. Short-Term Trading and Optimization Operation Strategy of Commercial Virtual Power Plants Considering Stochastic Factors [J]. Power System Technology, 2016, 40(05):1543–1549.
H. M. I. Pousinho, J. Contreras, P. Pinson, and V. M. F. Mendes, “Robust optimisation for self-scheduling and bidding strategies of hybrid CSP–fossil power plants, “ International Journal of Electrical Power & Energy Systems, vol. 67, pp. 639–650, 2015.
Li Zhiwei, Ye Xi, Le Jian, Liu Kaipei. Economic Optimization of Virtual Power Plant Output Based on Mixed Integer Programming [J]. Journal of Wuhan University (Engineering Edition), 2018, 51(12):1093–1097.
Huang Yuanming, Lu En, Lai Xiaowen, WANG Ning, SUN Hui, LI Ren. Design and Practice of Monthly Centralized Trading Mechanism in Guangdong Province[J]. Southern Power System Technology, 2018, 12(08):51–58.
Ding Junce, Shi Ke, Chen Haoyong, Chen Wei, Liang Zhifei. Analysis on Monthly Electricity Bidding of Guangdong Based on Experimental Economics[J]. Guangdong Electric Power, 2018, 31(06):19–24.
Wang Baohong. Research on Monthly Centralized Bidding Trading Model in Yunnan Power Market [D]. Yunnan University of Finance and Economics, 2017.
Qian Xiaorui. Theoretical Study on Alliance Bidding of Power Generation Enterprises in Monthly Centralized Bidding Transactions in Fujian’s Medium and Long-Term Electricity Market [C]//Fujian Electrical Engineering Society. Collection of Award-Winning Papers from the 2019 Academic Annual Conference of Fujian Electrical Engineering Society. Collection of Award-Winning Papers from the 2019 Academic Annual Conference of Fujian Electrical Engineering Society, 2020:537–541.
Wang Zhenggang, Xu Min, Xie Xiaoqian, Zhang Long. Model and Method of Monthly Concentration Deal-making Embedded Network Constraints[J]. Hunan Electric Power, 2018, 38(04):1–5+8.
Jing Zhaoxia, Zhu Jisong. Simulation Experiment Analysis on Market Rules for Monthly Centralized Bidding[J]. Automation of Electric Power Systems, 2017, 41(24):42–48.
Cheng Haihua, Yang Chenxing, Liu Shuo, Jin Yiding, Yang Zhenglin, Feng Shuhai. Optimization Clearance and System Development of Inter-Provincial Medium- and Long-Term Transactions Based on Path Combination Calculation and ATC [J]. Power System Technology, 2022, 46(12):4762–4774.
Ping Shao, Shao Ping, Cao Xiaojun, Feng Shuhai, Li Xuesong, Liu Dunnan, Zhao Ningning. Power Generation Curve Clearing Algorithm based on High-Low Match Auction Mechanism[J]. IOP Conference Series: Earth and Environmental Science, 2020, 571(1).
Zhang Junzhao, Jiang Xin, Duan Shijie, Li Qian. Research on Bidding Strategies for Virtual Power Plants Participating in the Operation of Electricity-Carbon Joint Markets [J]. Power System Protection and Control, 2023, 51(11):108–118.
Wang Shengyu. Research on Theory and Methods of Medium- and Long-Term Trading Decisions for Power Generation Enterprises’ Electricity Products [D]. North China Electric Power University (Beijing), 2019.
Yu Jie, Zhang Tongtong, Ding Qia, Tu Mengfu, Cao Rongzhang. Power retailers’ rolling correction trading strategy in monthly market considering clean energy accommodation[J]. Electric Power Automation Equipment, 2021, 41(09):240–247.
Ai Xin, Zhou Shupeng, Zhao Yuequn. Research on Optimal Operation and Bidding Strategy of Power Systems with Virtual Power Plants [J]. Proceedings of the Chinese Society for Electrical Engineering, 2016, 36(23):6351–6362+6600. DOI: 10.13334/j.0258-8013.pcsee.160471.
Liu Xue, Liu Shuo, Yu Songtai, Sun Tian, Guo Hongye. Design of Peak Shaving Capacity Compensation Mechanism for Enhancing Flexibility in New-Type Power Systems [J]. Power System Technology, 2023, 47(01):155–163.
Matsuo Yuhji. Re-Defining System LCOE: Costs and Values of Power Sources[J]. Energies, 2022, 15(18).
Yang Yunxia, Niu Haifeng, Li Yongying, Liu Jingjing, Xu Chang. Levelized Cost of Electricity is a Common Parameter for Economic Evaluation of Different Power Generation Technologies [J]. Energy Research and Utilization, 2021, (05):42–47.
Ran Guo, Yijun Yuan. Different types of environmental regulations and heterogeneous influence on energy efficiency in the industrial sector: Evidence from Chinese provincial data[J]. Energy Policy, 2020, 145.
Li Jiantao, Yao Hongwei, Mei Dewen. Research on Carbon Market Pricing Mechanism in China under Carbon Neutrality Goals [J]. Environmental Protection, 2021, 49(14):24–29.
Sun Y Y, Guo Z, Zhang J G, et al. Research on cost analysis and competitiveness of power generation units under the influence of carbon market and power market coupling mechanism [J]. Climate Change Research, 2021, 17 (4): 476–483.
Guo Wendong, Liang Xueshi, Zheng Fuyun, Wei Yanjun, Nie Jing, Qiao Lei, Liu Xiaojia. Accounting and Trend Analysis of Carbon Dioxide Emissions from Thermal Power Enterprises in Heilongjiang Province [J]. Land and Natural Resource Research, 2023, (01):29–31.
Ling Yantao, Xia Senmao, Cao Mengqiu, He Kerun, Lim Ming K., Sukumar Arun, Yi Huiyong, Qian Xiaoduo. Carbon emissions in China’s thermal electricity and heating industry: An input-output structural decomposition analysis[J]. Journal of Cleaner Production, 2021, 329.
Ren Zhouyang, Cheng Huan, Zhou Guiping, Zhao Yuanzhu, Wang Lei. A Sequential Probabilistic Production Simulation Method for Coupled Systems Considering External Game and Internal Coordination[J]. Transactions of China Electrotechnical Society:1–14. [2023-07-19].
Karkour S , Ichisugi Y , Abeynayaka A , et al. External-Cost Estimation of Electricity Generation in G20 Countries: Case Study Using a Global Life-Cycle Impact-Assessment Method[J]. Sustainability, 2020, 12(5).
Wang Shuyun, Lou Suhua, Wu Yaowu, Cao Kan, Zhou Kunpeng. Robust Optimal Dispatch of Large-scale Wind Power Integration Considering Deep Peak Regulation Cost of Thermal Power Units[J]. Automation of Electric Power Systems, 2020, 44(01):118–125.
Yang Jianjun, Du Lilao, Ma Qixiang, Lin Qicai, Liu Zhaomei. Study on the Influence of PM2.5
Emission Characteristics from Coal-Fired Power Plants Based on Different Boiler Types and Calcium-Based Desulfurization Processes [J]. Journal of Safety and Environment, 2019, 19(04):1358–1366.
https://aeeeuropeenergy.com/
