optimal power

distribution network

unit commitment

smart grid

electricity market

integrated energy

demand response

electricity markets

IEEE Transactions on Industry Applications

This paper presents a mathematical model for the energy bidding problem of a virtual power plant (VPP) that participates in the regular electricity market and the intraday demand response exchange (DRX) market. Different system uncertainties due to the intermittent renewable energy sources, retail customers' demand, and electricity prices are considered in the model. The DRX market enables a VPP to purchase demand response services, which can be treated as “virtual energy resources,” from several demand response providers to reduce the penalty cost on the deviation between the day-head bidding and the real-time dispatch. This could increase the expected profit and the renewable energy utilization of the VPP. The overall energy bidding problem is modeled as a three-stage stochastic program, which can be solved efficiently by the scenario-based optimization approach. Extensive numerical results show that the DRX market participation can improve the VPP's energy management.

A Bidding Strategy for Virtual Power Plants With the Intraday Demand Response Exchange Market Using the Stochastic Programming