Optimal Operation of Distributed Flexible Generation Sources Incorporating VPP Framework in Market Environment Considering Uncertainties

Abstract

With the evolution of wind turbine technologies, an immense desire is to integrate this energy into power markets more than ever. On the other hand, wind farms have a limited role in the electricity market due to their uncertainty. The influence of wind farms, electric vehicles, and flexible loads participating in the electricity markets aiming to minimize the deviation of wind power generation capacity from the final amount of cleared power in the market has been explored in this study. Two probabilistic models have been considered for this goal in a day-ahead electricity market. Wind farms, electric vehicles, and flexible loads offer competitive prices in the first scenario by forming a virtual power plant (VPP). In the second scenario, they engage individually in the electrical market. Both generation models incorporate a scenario reduction technique to simulate the uncertainty associated with wind turbine production capacity and a penalty mechanism for violating the wind farm generation from the amount of pledged capacity in the market. The results imply that wind farms, electric cars, and flexible loads benefit from engaging as a virtual power plant scheme component in the electricity market.