Volume 4: Innovative Solutions for Energy Transitions: Part III

Optimal Trading Partners Selection Strategy and Transactive Energy Mechanism of Virtual Power Plant Sisi Ma*, Jianlin Yang, Ciwei Gao, Tao Yu

Abstract

Wind generators (WGs) may suffer from heavy imbalance costs caused by their uncertainty nature if they bid in electricity market independently. However, they can utilize demand response (DR) potential of flexible loads like air conditioners (ACs) to set off their power fluctuation. In this paper, WGs joint with ACs constitute a virtual power plant (VPP), and bid in the market as a whole. Transactive energy (TE) serves as the main approach to setting off power deviations of distributed energy resources (DERs) including WGs and ACs, through deviation energy trading among them. An optimal day-ahead strategy is proposed for VPP operator (VPPO) to select qualified trading partners for WGs based on their transaction demand. Then VPPO sets up realtime TE market inside the coalition and launches double auctions (DAs) in each time slot of the next day, inducing DERs to set off their power deviations through peer to peer (P2P) energy trading. Results of case study show that VPPO can select qualified trading partners for WGs efficiently, maximizing VPP’s prospective revenue as well as covering WGs’ transaction demand. Both DERs and VPPO can benefit from TE market without sacrificing AC consumers’ comfort.

Keywords demand response, distributed energy resource, double auction, transactive energy, virtual power plant