Single-level flexible robust optimal bidding of Renewable-Only Virtual Power Plant in energy and secondary reserve markets

H. Nemati, P. Sánchez, A. Baringo, A. Ortega

Energy

Resumen:

This paper proposes a novel single-level robust mathematical approach to model the Renewable-only Virtual Power Plant (RVPP) bidding problem in the simultaneous day-ahead and secondary reserve markets. In existing single-level models in the literature, different uncertainties are modeled separately, without explicitly considering their interactions, leading to worst-case energy scenarios. In this study, the flexible worst-case profit of RVPPs due to uncertainties related to electricity prices, Non-dispatchable Renewable Energy Sources (ND-RES) production, and flexible demand is captured. In order to find the flexible worst-case profit in a single-level model, the relationship between price and energy uncertainties leads to non-linear constraints, which are finely linearized. Simulation results show the superiority of the proposed robust model compared to alternatives found in the literature in terms of computational efficiency, without compromising the quality of results. Moreover, ND-RES and demand uncertainties exert a greater influence on the RVPP trading strategy and profitability compared to uncertainties in electricity prices. Specifically, for the studied RVPP, the sold and purchased energy decrease by 52% and increase by 74.2%, respectively, when only ND-RES and demand uncertainties are considered, as opposed to the case where solely uncertainties related to day-ahead and secondary reserve market prices are taken into account.

Resumen divulgativo:

Este estudio propone un método novedoso para ayudar a las plantas virtuales 100 % renovables a tomar mejores decisiones en los mercados eléctricos, considerando la interacción entre precios y energía inciertos. Mejora las ganancias y es más rápido y eficiente que los modelos existentes.

Palabras Clave: Renewable-only virtual power plant; Electricity markets; Single-level model; Robust optimization; UncertaintyFlexible worst-case profit

Índice de impacto JCR y cuartil WoS: 9,000 - Q1 (2023)

Referencia DOI: https://doi.org/10.1016/j.energy.2025.136421

In press: Mayo 2025.

Cita:
H. Nemati, P. Sánchez, A. Baringo, A. Ortega, Single-level flexible robust optimal bidding of Renewable-Only Virtual Power Plant in energy and secondary reserve markets. Energy.