Stochastic Mixed-Integer Programming (SMIP)-Based Distributed Energy Resource Allocation Method for Virtual Power Plants

Abstract

Virtual power plants (VPPs) have been widely researched to handle the unpredictability and variable nature of renewable energy sources. The distributed energy resources are aggregated to form into a virtual power plant and operate as a single generator from the perspective of a system operator. Power system operators often utilize the incentives to operate virtual power plants in desired ways. To maximize the revenue of virtual power plant operators, including its incentives, an optimal portfolio needs to be identified, because each renewable energy source has a different generation pattern. This study proposes a stochastic mixed-integer programming based distributed energy resource allocation method. The proposed method attempts to maximize the revenue of VPP operators considering market incentives. Furthermore, the uncertainty in the generation pattern of renewable energy sources is considered by the stochastic approach. Numerical results show the effectiveness of the proposed method.