Risk-constrained offering strategy for a hybrid power plant consisting of wind power producer and electric vehicle aggregator

Xiang Gao, Ka Wing Chan, Shiwei Xia, Bin Zhou, Xi Lu, Da Xu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

20 Citations (Scopus)

Abstract

Renewable energy producers such as wind power producers (WPP) and electric vehicle (EV) aggregators are playing an increasingly important role in the electricity market as their large capacity could strategically influence the electricity price. This paper proposes a bi-level stochastic optimization model of offering strategy for an aggregated WPP-EV hybrid power plant (HPP) as a price maker in the day-ahead (DA) market while considering the uncertainties of the energy production and spot price in the real-time (RT) market. While the HPP's profits is maximized in the upper level of the proposed model with the use of conditional-value-at-risk (CVaR) to manage the risk of expected revenues, the social welfare from the perspective of the grid is maximized in the lower level. The formulated bi-level model is first transformed into a single-level mathematical program with equilibrium constraints (MPEC) and then further transformed into a mixed integer linear programming (MILP) problem for solution. Simulation results have demonstrated the effectiveness of the proposed HPP model with strategically bidding price to increase profits and reduce volatility of profits by considering the risk-metric.

Original languageEnglish
Pages (from-to)183-191
Number of pages9
JournalEnergy
Volume177
DOIs
Publication statusPublished - 15 Jun 2019

Keywords

  • Electric vehicle
  • Hybrid power plant
  • Offering strategy
  • Renewable energy

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction
  • Pollution
  • Mechanical Engineering
  • Industrial and Manufacturing Engineering
  • Electrical and Electronic Engineering

Cite this