Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach

Dong Jun; Nie Linpeng; Pa Lidan

doi:doi:10.11648/j.ajere.20190401.14

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Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach

Dong Jun, Nie Linpeng, Pa Lidan

Published in American Journal of Environmental and Resource Economics (Volume 4, Issue 1)

Received: 23 March 2019 Accepted: 26 April 2019 Published: 30 May 2019

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Abstract

China is vigorously promoting the reform of the electricity spot market after the notice on the development of pilot projects for the spot electricity market was issued in 2017. At the same time, china is upgrading and renovating its energy structure, in the context of structural reform on the energy supply side, the decentralized form of clean energy utilization will develop rapidly. With the continuous improvement of the trading mechanism in spot market, it has become an inevitable trend that many distributed power resources will be involved in electricity market to participate in market transaction. Therefore, in order to promote distributed energy to participate in spot market, virtual power plant technique is paid increasing attentions. Combining the current hot issue, this paper constructs a decision-making model of virtual power plant for participating in spot market transaction based on hybrid stochastic and robust method, which can provide a quantitative decision analysis tool for virtual power plant operators to participate in spot market transactions. The main contribution of this paper are as follows:1) we proposed a transaction decision model that based on hybrid stochastic optimization and robust optimization methods and example simulation was given to illustrate the effectiveness of the model; 2) this paper focused on the electricity market in china.

Published in	American Journal of Environmental and Resource Economics (Volume 4, Issue 1)
DOI	10.11648/j.ajere.20190401.14
Page(s)	32-43
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Stochastic Optimization, Robust Optimization, Virtual Power Plant, Transaction Decision-making Model

References

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[6]	Morteza R, Luis B. Strategic Bidding for a Virtual Power Plant in the Day-Ahead and Real-Time Markets: A Price-Taker Robust Optimization Approach [J]. IEEE Transactions on Power Systems, 2016, 31(4):2676-2687.
[7]	Mashhour E, Moghaddas-Tafreshi S M. Bidding Strategy of Virtual Power Plant for Participating in Energy and Spinning Reserve Markets—Part II: Numerical Analysis [J]. IEEE Transactions on Power Systems, 2011, 26(2):957-964.
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APA Style

Dong Jun, Nie Linpeng, Pa Lidan. (2019). Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach. American Journal of Environmental and Resource Economics, 4(1), 32-43. https://doi.org/10.11648/j.ajere.20190401.14

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ACS Style

Dong Jun; Nie Linpeng; Pa Lidan. Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach. Am. J. Environ. Resour. Econ. 2019, 4(1), 32-43. doi: 10.11648/j.ajere.20190401.14

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AMA Style

Dong Jun, Nie Linpeng, Pa Lidan. Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach. Am J Environ Resour Econ. 2019;4(1):32-43. doi: 10.11648/j.ajere.20190401.14

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@article{10.11648/j.ajere.20190401.14,
  author = {Dong Jun and Nie Linpeng and Pa Lidan},
  title = {Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach},
  journal = {American Journal of Environmental and Resource Economics},
  volume = {4},
  number = {1},
  pages = {32-43},
  doi = {10.11648/j.ajere.20190401.14},
  url = {https://doi.org/10.11648/j.ajere.20190401.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20190401.14},
  abstract = {China is vigorously promoting the reform of the electricity spot market after the notice on the development of pilot projects for the spot electricity market was issued in 2017. At the same time, china is upgrading and renovating its energy structure, in the context of structural reform on the energy supply side, the decentralized form of clean energy utilization will develop rapidly. With the continuous improvement of the trading mechanism in spot market, it has become an inevitable trend that many distributed power resources will be involved in electricity market to participate in market transaction. Therefore, in order to promote distributed energy to participate in spot market, virtual power plant technique is paid increasing attentions. Combining the current hot issue, this paper constructs a decision-making model of virtual power plant for participating in spot market transaction based on hybrid stochastic and robust method, which can provide a quantitative decision analysis tool for virtual power plant operators to participate in spot market transactions. The main contribution of this paper are as follows:1) we proposed a transaction decision model that based on hybrid stochastic optimization and robust optimization methods and example simulation was given to illustrate the effectiveness of the model; 2) this paper focused on the electricity market in china.},
 year = {2019}
}

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TY  - JOUR
T1  - Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach
AU  - Dong Jun
AU  - Nie Linpeng
AU  - Pa Lidan
Y1  - 2019/05/30
PY  - 2019
N1  - https://doi.org/10.11648/j.ajere.20190401.14
DO  - 10.11648/j.ajere.20190401.14
T2  - American Journal of Environmental and Resource Economics
JF  - American Journal of Environmental and Resource Economics
JO  - American Journal of Environmental and Resource Economics
SP  - 32
EP  - 43
PB  - Science Publishing Group
SN  - 2578-787X
UR  - https://doi.org/10.11648/j.ajere.20190401.14
AB  - China is vigorously promoting the reform of the electricity spot market after the notice on the development of pilot projects for the spot electricity market was issued in 2017. At the same time, china is upgrading and renovating its energy structure, in the context of structural reform on the energy supply side, the decentralized form of clean energy utilization will develop rapidly. With the continuous improvement of the trading mechanism in spot market, it has become an inevitable trend that many distributed power resources will be involved in electricity market to participate in market transaction. Therefore, in order to promote distributed energy to participate in spot market, virtual power plant technique is paid increasing attentions. Combining the current hot issue, this paper constructs a decision-making model of virtual power plant for participating in spot market transaction based on hybrid stochastic and robust method, which can provide a quantitative decision analysis tool for virtual power plant operators to participate in spot market transactions. The main contribution of this paper are as follows:1) we proposed a transaction decision model that based on hybrid stochastic optimization and robust optimization methods and example simulation was given to illustrate the effectiveness of the model; 2) this paper focused on the electricity market in china.
VL  - 4
IS  - 1
ER  -

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Author Information

Dong Jun

School of Economics and Management, North China Electric Power University, Beijing, China
Nie Linpeng

School of Economics and Management, North China Electric Power University, Beijing, China
Pa Lidan

School of Economics and Management, North China Electric Power University, Beijing, China

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Plain Text BibTeX RIS

APA Style

Dong Jun, Nie Linpeng, Pa Lidan. (2019). Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach. American Journal of Environmental and Resource Economics, 4(1), 32-43. https://doi.org/10.11648/j.ajere.20190401.14

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ACS Style

Dong Jun; Nie Linpeng; Pa Lidan. Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach. Am. J. Environ. Resour. Econ. 2019, 4(1), 32-43. doi: 10.11648/j.ajere.20190401.14

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AMA Style

Dong Jun, Nie Linpeng, Pa Lidan. Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach. Am J Environ Resour Econ. 2019;4(1):32-43. doi: 10.11648/j.ajere.20190401.14

Copy | Download

@article{10.11648/j.ajere.20190401.14,
  author = {Dong Jun and Nie Linpeng and Pa Lidan},
  title = {Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach},
  journal = {American Journal of Environmental and Resource Economics},
  volume = {4},
  number = {1},
  pages = {32-43},
  doi = {10.11648/j.ajere.20190401.14},
  url = {https://doi.org/10.11648/j.ajere.20190401.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20190401.14},
  abstract = {China is vigorously promoting the reform of the electricity spot market after the notice on the development of pilot projects for the spot electricity market was issued in 2017. At the same time, china is upgrading and renovating its energy structure, in the context of structural reform on the energy supply side, the decentralized form of clean energy utilization will develop rapidly. With the continuous improvement of the trading mechanism in spot market, it has become an inevitable trend that many distributed power resources will be involved in electricity market to participate in market transaction. Therefore, in order to promote distributed energy to participate in spot market, virtual power plant technique is paid increasing attentions. Combining the current hot issue, this paper constructs a decision-making model of virtual power plant for participating in spot market transaction based on hybrid stochastic and robust method, which can provide a quantitative decision analysis tool for virtual power plant operators to participate in spot market transactions. The main contribution of this paper are as follows:1) we proposed a transaction decision model that based on hybrid stochastic optimization and robust optimization methods and example simulation was given to illustrate the effectiveness of the model; 2) this paper focused on the electricity market in china.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Decision-making Model of Virtual Power Plant for Participating in Spot Market Transaction Based on Hybrid Stochastic and Robust Approach
AU  - Dong Jun
AU  - Nie Linpeng
AU  - Pa Lidan
Y1  - 2019/05/30
PY  - 2019
N1  - https://doi.org/10.11648/j.ajere.20190401.14
DO  - 10.11648/j.ajere.20190401.14
T2  - American Journal of Environmental and Resource Economics
JF  - American Journal of Environmental and Resource Economics
JO  - American Journal of Environmental and Resource Economics
SP  - 32
EP  - 43
PB  - Science Publishing Group
SN  - 2578-787X
UR  - https://doi.org/10.11648/j.ajere.20190401.14
AB  - China is vigorously promoting the reform of the electricity spot market after the notice on the development of pilot projects for the spot electricity market was issued in 2017. At the same time, china is upgrading and renovating its energy structure, in the context of structural reform on the energy supply side, the decentralized form of clean energy utilization will develop rapidly. With the continuous improvement of the trading mechanism in spot market, it has become an inevitable trend that many distributed power resources will be involved in electricity market to participate in market transaction. Therefore, in order to promote distributed energy to participate in spot market, virtual power plant technique is paid increasing attentions. Combining the current hot issue, this paper constructs a decision-making model of virtual power plant for participating in spot market transaction based on hybrid stochastic and robust method, which can provide a quantitative decision analysis tool for virtual power plant operators to participate in spot market transactions. The main contribution of this paper are as follows:1) we proposed a transaction decision model that based on hybrid stochastic optimization and robust optimization methods and example simulation was given to illustrate the effectiveness of the model; 2) this paper focused on the electricity market in china.
VL  - 4
IS  - 1
ER  -

Copy | Download