Optimization of a Virtual Power Plant Operation in Electricity Market Using Mixed-integer linear Programming

Concept of Virtual Power Plant (VPP) can be used to aggregate and enhance the visibility and controllability of Distributed Energy Resources (DER) units, as thepenetration rate of these units into electricity grid is increasing. This paper presents an optimization model that provides optimal operating strategy and benefit maximization scheme as well as the reduction of the emissionsfor a VPP. The VPP considered in this paper consists of awind turbine, a CHP system, three different DGs, and several loads (including both interruptible and non-interruptible loads). Producers are able to generate and sell electricity to customers and/or power market and electric energy can be exchanged between VPP and Grid. Thepresented model is a mixed-integer linear programming (MILP) problem with constraints. In this problem, Objective function is VPP profit with aim supplyboth thermal and electrical energy demands. The General Algebraic Modeling System (GAMS) is used to demonstrate the efficiency of the proposed approach to satisfy the demand and to reduce emissions.

Keywords:

Virtual Power Plant , Distributed Energy Resources , Power Market , Emission Reduction , Mixed-Integer Linear Programming