Bidding Strategy for VPP and Economic Feasibility Study of the Optimal Sizing of Storage Systems to Face the Uncertainty of Solar Generation Modelled with IGDT

Abstract

Virtual power plants (VPP) emerge as a new participant that, in order to maximise their visibility and income, represents a group of distributed energy resources (DER) in the electricity market. However, this DER aggregation brings challenges, such as fluctuating renewable sources dependent on weather variables and guaranteeing power set points. One way to deal with these intermittencies is to incorporate the energy storage system (ESS) into the VPPs. Therefore, this paper presents a novel bidding strategy of VPP that includes modelling the uncertainty associated with solar generation using information gap decision theory (IGDT) and the optimal sizing of ESS systems so as to deal with solar generation fluctuations. Additionally, a study is carried out to determine the economic viability of this methodology in the short, medium and long terms using the return on investment (ROI).