Mechanism Design for Virtual Power Plant with Independent Distributed Generators

Alfiya Kulmukhanova, Ali T. Al-Awami, Ibrahim M. El-Amin, Jeff S. Shamma

Research output: Contribution to journalConference articlepeer-review

Abstract

Penetration of distributed energy resources (DERs) in the legacy grid is leading to lower wholesale electricity prices, higher balancing costs, and reliability issues. We study a virtual power plant (VPP) - an aggregation of DERs - as a feasible and non-disruptive way of integrating these resources into electricity markets. We design the VPP with a combination of dispatchable and non-dispatchable generators which are privately owned and might have private information. The VPP acts as an intermediary between the generators and the day-ahead wholesale market and balances the system locally in real time. Using mechanism design, we design heuristic transfers of the VPP to the generators to reduce the operating cost of the overall system. From the simulations, we conclude that the overall cost of the system and the behavior of the generators and the VPP with the designed transfers are similar to those of the centralized VPP case, where the VPP owns and manages the generators within its territory.

Original languageEnglish (US)
Pages (from-to)419-424
Number of pages6
JournalIFAC-PapersOnLine
Volume52
Issue number4
DOIs
StatePublished - 2019
Externally publishedYes
EventIFAC Workshop on Control of Smart Grid and Renewable Energy Systems, CSGRES 2019 - Jeju, Korea, Republic of
Duration: Jun 10 2019Jun 12 2019

Keywords

  • Electricity Markets
  • Energy Resources Management
  • Game Theory
  • Multi-Agent Systems
  • Virtual Power Plants

ASJC Scopus subject areas

  • Control and Systems Engineering

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