Bidding strategy analysis of virtual power plant considering demand response and uncertainty of renewable energy

Due to the gradual exhaustion of petroleum-based energy resources and severe concern for environmental protection, renewable energy (RE) resources and demand response (DR) techniques have been wide deployed in power network. However, the insufficient management as well as technology bottleneck becomes the major obstacle in their further development. Based on the uniform clearing of electricity market, a centralised dispatch model of virtual power plant (VPP) is introduced to improve the competitiveness of distributed energy resources in electricity market. To neutralise the side effect of RE penetration, a bidding strategy optimisation model considering DR and the uncertainty of RE for VPP is proposed and numerical analysis is conducted to prove its applicability. In addition, scenario analysis method is applied to deal with the influence of elastic demand and potential risk, which are associated with utility users’ consumption patterns and VPP's bidding preference, respectively. The application of distributed algorithm into multi-players’ strategy optimisation problem accelerated the convergence of bidding procedure, which verifies the applicability and effectiveness of the proposed models. Furthermore, numerical case studies demonstrate the distinctive superiority of VPP in the integration and management of RE and DR resources, which in turn contribute to its advantage position in electricity market.