Assessing value of renewable-based VPP versus electrochemical storage: Multi-market participation under different scheduling regimes and uncertainties

H. Nemati, I. Egido, P. Sánchez, A. Ortega

Sustainable Energy, Grids and Networks Vol. 46, pp. 102281

Summary:

To explore clean and cost-effective alternatives to Electrochemical Storage Systems (ESSs), this study focuses on Renewable-based Virtual Power Plants (RVPPs) that employ Dispatchable Renewable Energy Sources (D-RES), Concentrated Solar Power Plant (CSP), and demand flexibility as primary sources of flexibility. In this context, the paper compares the participation of RVPPs and grid-scale ESSs in energy and reserve markets, evaluating their technical performance, market strategies, and economic outcomes. To ensure a fair comparison, scheduling is analyzed over representative sample days that capture seasonal operating regimes, and the associated uncertainties are explicitly modeled. An uncertainty-aware scheduling and bidding framework is developed, explicitly capturing price, generation, and demand uncertainties. It also incorporates a tailored algorithm for sizing the ESS so that its market performance aligns with that of the RVPP. Simulations cover both favorable and unfavorable scenarios, reflecting seasonal energy limits for dispatchable resources, varying forecast errors for nondispatchable resources, and alternative uncertainty-management strategies. The results provide operators with quantitative guidance on the relative value of each approach.

Spanish layman's summary:

Este estudio muestra a los operadores su valor real al compararla con la operación independiente de sus unidades y con una batería bajo distintos climas e incertidumbres, guiando ofertas, flexibilidad y necesidad de almacenamiento.

English layman's summary:

This paper shows operators the real value of a renewable VPP by comparing it with independent unit operation and with a battery under different weather and uncertainty conditions, guiding bidding, flexibility design, and storage needs.

Keywords: Renewable-based virtual power plant; Electrochemical storage system; Energy market; Reserve market; Uncertainty

JCR-JIF Impact Factor and WoS quartile: 5,700 - Q1 (2025)

DOI reference: https://doi.org/10.1016/j.segan.2026.102281

Published on paper: June 2026.

Published on-line: April 2026.

Citation:
H. Nemati, I. Egido, P. Sánchez, A. Ortega, "Assessing value of renewable-based VPP versus electrochemical storage: Multi-market participation under different scheduling regimes and uncertainties", Sustainable Energy, Grids and Networks, Vol. 46, pp. 102281, June 2026. [Online: April 2026] doi: 10.1016/j.segan.2026.102281