{"title":"Maximizing virtual power plant profit: A two-level optimization model for energy market participation","authors":"","doi":"10.1016/j.compeleceng.2024.109732","DOIUrl":null,"url":null,"abstract":"<div><div>Managing dispersed generation via virtual power plants (VPPs) is crucial for maximizing profits in electricity markets. This paper presents a model aimed at maximizing VPP profit through participation in the energy market. The proposed model addresses grid and security constraints of units using deterministic programming, formulated as an equilibrium-constrained, two-level mathematical optimization model. The first level focuses on maximizing VPP profit, while the second optimizes social welfare. Applying duality theory transforms this two-level model into a mixed-integer linear programming model, further refined using Karush–Kuhn–Tucker (KKT) optimality conditions. Given the inherent conflict in these objectives, a novel algorithm employing water flow dynamics is proposed for solving the model. To enhance method performance, the Pareto criterion and fuzzy decision-making are incorporated. Model tests are conducted on a standard 24-bus IEEE grid, demonstrating its efficiency. For the single-objective problem without line congestion, the solving time was 12 s. Introducing line congestion increased the profit by 13.4 %, from $40,413.21 to $45,837.32. In the two-objective problem without congestion, the profit ranged between $36,928.72 and $42,813.28, and emissions ranged from 275.21 to 2,916.32 pounds. With congestion, the profit range increased by a maximum of 8.7 %, and emissions were reduced by up to 4.6 %.</div></div>","PeriodicalId":50630,"journal":{"name":"Computers & Electrical Engineering","volume":null,"pages":null},"PeriodicalIF":4.0000,"publicationDate":"2024-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Computers & Electrical Engineering","FirstCategoryId":"94","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0045790624006591","RegionNum":3,"RegionCategory":"计算机科学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"COMPUTER SCIENCE, HARDWARE & ARCHITECTURE","Score":null,"Total":0}
引用次数: 0
Abstract
Managing dispersed generation via virtual power plants (VPPs) is crucial for maximizing profits in electricity markets. This paper presents a model aimed at maximizing VPP profit through participation in the energy market. The proposed model addresses grid and security constraints of units using deterministic programming, formulated as an equilibrium-constrained, two-level mathematical optimization model. The first level focuses on maximizing VPP profit, while the second optimizes social welfare. Applying duality theory transforms this two-level model into a mixed-integer linear programming model, further refined using Karush–Kuhn–Tucker (KKT) optimality conditions. Given the inherent conflict in these objectives, a novel algorithm employing water flow dynamics is proposed for solving the model. To enhance method performance, the Pareto criterion and fuzzy decision-making are incorporated. Model tests are conducted on a standard 24-bus IEEE grid, demonstrating its efficiency. For the single-objective problem without line congestion, the solving time was 12 s. Introducing line congestion increased the profit by 13.4 %, from $40,413.21 to $45,837.32. In the two-objective problem without congestion, the profit ranged between $36,928.72 and $42,813.28, and emissions ranged from 275.21 to 2,916.32 pounds. With congestion, the profit range increased by a maximum of 8.7 %, and emissions were reduced by up to 4.6 %.
期刊介绍:
The impact of computers has nowhere been more revolutionary than in electrical engineering. The design, analysis, and operation of electrical and electronic systems are now dominated by computers, a transformation that has been motivated by the natural ease of interface between computers and electrical systems, and the promise of spectacular improvements in speed and efficiency.
Published since 1973, Computers & Electrical Engineering provides rapid publication of topical research into the integration of computer technology and computational techniques with electrical and electronic systems. The journal publishes papers featuring novel implementations of computers and computational techniques in areas like signal and image processing, high-performance computing, parallel processing, and communications. Special attention will be paid to papers describing innovative architectures, algorithms, and software tools.