Comillas Pontifical University. Madrid (Spain)
March 4th, 2026
Summary:
This thesis proposes a novel Virtual Power Plant (VPP) operation model, that is composed, exclusively, of Renewable Energy Sources (RES); including hydro, wind farm, solar Photo-Voltaic (PV), Concentrated Solar Power Plant (CSP) and biomass; and/or Flexible Demands (FDs). The main objective that is pursued in this thesis is to investigate how to optimally operate and configure a Renewable-based Virtual Power Plant (RVPP) for maximum profitability in the energy and Ancillary Service Market (ASM). To this aim, the RVPP optimization model includes features to account for the various characteristics of the RVPP itself, the electrical network to which it is connected, and the market mechanisms that can help the RVPP become economically efficient. Such characteristics include: (i) the RVPP components, such as generating units, demands, and RES-based storage units (pumped hydro, CSP); (ii) the electrical network in terms of, for example, power and reserve balances; (iii) the markets in which the RVPP may participate, such as energy markets and ASM; and (iv) the uncertainties that characterize several parameters of the model, such as stochastic energy sources (wind and solar), market prices, and demand pattern. Different business models for the RVPP have been identified in the form of the electric energy and power markets that can be suitable for its participation. Among all the market schemes currently implemented in Europe, the most relevant from the RVPP perspective are the Day-Ahead Market (DAM) and Intra-Day Market (IDM) (energy); and the Secondary Reserve Market (SRM) (power). With this in mind, the RVPP operator could select the appropriate objective functions within the proposed model presented so that the RVPP can follow the desired business model.
Spanish layman's summary:
Esta tesis propone una Planta Virtual compuesta exclusivamente por fuentes de energía renovable y demanda flexible. Desarrolla un modelo para su operación y participación viable en los mercados de energía y reservas, considerando las restricciones técnicas de las unidades, las reglas del mercado y las incertidumbres como el viento, la generación solar, los precios y la demanda.
English layman's summary:
This thesis proposes a Virtual Power Plant composed exclusively of renewable energy sources and flexible demand. It develops a model for its viable operation and bidding in energy and reserve markets, considering unit technical constraints, market limits, and uncertainties such as wind, solar generation, prices, and demand.
Descriptors: Electrical technology and engineering, Power technology, Operations research, Sectorial economics
Keywords: Virtual power plant, renewable energy sources, energy market, reserve market, uncertainty, robust optimization
Citation:
H. Nemati, "Optimal Operation and Bidding of Renewable-based VPP under Uncertainty in the Electricity Markets", PhD. dissertation, Comillas Pontifical University, Madrid, Spain, 2026.
