Modeling, optimization, and analysis of a virtual power plant demand response mechanism for the internal electricity market considering the uncertainty of renewable energy sources

Zahid Ullah, Arshad Arshad*, Hany Hassanin

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
3 Downloads (Pure)

Abstract

The penetration of renewable energy sources (RESs) in the electrical power system has increased significantly over the past years due to increasing global concern about climate change. However, integrating RESs into the power market is highly problematic. The output of RESs such as wind turbines (WTs) and photovoltaics (PVs) is highly uncertain. Their correlation with load demand is not always guaranteed, which compromises system reliability. Distributed energy resources (DERs), especially demand response (DR) programs and energy storage systems (ESSs), are possible options to overcome these operational challenges under the virtual power plant (VPP) setting. This study investigates the impact of using a DR program and battery energy storage system (BESS) on the VPP’s internal electricity market, and also cost-minimization analysis from a utility viewpoint. Three different constrained optimal power flow (OPF) problems are solved such as base case, DR case, and BESS case to determine total incurred costs, locational marginal prices (LMPs), and generator commitments. A scenario tree approach is used to model the uncertainties associated with WTs, PVs, and load demand. The proposed model is investigated on a 14-bus distribution system. The simulation results obtained demonstrate a favorable impact of DR and a BESS on renewable operational challenges.
Original languageEnglish
Article number5296
Number of pages16
JournalEnergies
Volume15
Issue number14
DOIs
Publication statusPublished - 21 Jul 2022

Keywords

  • electricity markets
  • demand side management
  • renewable distributed generation

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