Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysis
This paper investigates the joint participation of Renewable-only Virtual Power Plants (RVPPs) in the energy and reserve markets while considering the imbalance costs in the balancing market. Existing research on robust optimization typically relies on the well-known parameter called the uncertainty...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | International Journal of Electrical Power & Energy Systems |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S0142061525001450 |
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| author | Hadi Nemati Pedro Sánchez-Martín Lukas Sigrist Luis Rouco Álvaro Ortega |
| author_facet | Hadi Nemati Pedro Sánchez-Martín Lukas Sigrist Luis Rouco Álvaro Ortega |
| author_sort | Hadi Nemati |
| collection | DOAJ |
| description | This paper investigates the joint participation of Renewable-only Virtual Power Plants (RVPPs) in the energy and reserve markets while considering the imbalance costs in the balancing market. Existing research on robust optimization typically relies on the well-known parameter called the uncertainty budget to define the level of conservatism. However, this parameter is not defined based on economic factors but rather on the nature of each uncertainty. This work introduces a regret-based flexible robust optimization problem to address this gap, accounting for various sources of uncertainty in energy and reserve prices, as well as the production of non-dispatchable renewable energy sources and demand consumption. The concept of average regret is developed and implemented through a set of mixed-integer linear constraints to help the RVPP operator gain relevant economic insights regarding this parameter. Simulation results demonstrate the applicability of the regret-based robust optimization formulation in determining an interpretable level of conservatism against different uncertainties. |
| format | Article |
| id | doaj-art-68ed3ad729d0456fb9a3fcae134e0085 |
| institution | DOAJ |
| issn | 0142-0615 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | International Journal of Electrical Power & Energy Systems |
| spelling | doaj-art-68ed3ad729d0456fb9a3fcae134e00852025-08-20T03:03:37ZengElsevierInternational Journal of Electrical Power & Energy Systems0142-06152025-06-0116711059410.1016/j.ijepes.2025.110594Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysisHadi Nemati0Pedro Sánchez-Martín1Lukas Sigrist2Luis Rouco3Álvaro Ortega4Corresponding author.; Comillas Pontifical University ICAI School of Engineering, Institute for Research in Technology, Madrid, SpainComillas Pontifical University ICAI School of Engineering, Institute for Research in Technology, Madrid, SpainComillas Pontifical University ICAI School of Engineering, Institute for Research in Technology, Madrid, SpainComillas Pontifical University ICAI School of Engineering, Institute for Research in Technology, Madrid, SpainComillas Pontifical University ICAI School of Engineering, Institute for Research in Technology, Madrid, SpainThis paper investigates the joint participation of Renewable-only Virtual Power Plants (RVPPs) in the energy and reserve markets while considering the imbalance costs in the balancing market. Existing research on robust optimization typically relies on the well-known parameter called the uncertainty budget to define the level of conservatism. However, this parameter is not defined based on economic factors but rather on the nature of each uncertainty. This work introduces a regret-based flexible robust optimization problem to address this gap, accounting for various sources of uncertainty in energy and reserve prices, as well as the production of non-dispatchable renewable energy sources and demand consumption. The concept of average regret is developed and implemented through a set of mixed-integer linear constraints to help the RVPP operator gain relevant economic insights regarding this parameter. Simulation results demonstrate the applicability of the regret-based robust optimization formulation in determining an interpretable level of conservatism against different uncertainties.http://www.sciencedirect.com/science/article/pii/S0142061525001450Renewable-only Virtual Power PlantRegretFlexible robust optimizationElectricity market |
| spellingShingle | Hadi Nemati Pedro Sánchez-Martín Lukas Sigrist Luis Rouco Álvaro Ortega Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysis International Journal of Electrical Power & Energy Systems Renewable-only Virtual Power Plant Regret Flexible robust optimization Electricity market |
| title | Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysis |
| title_full | Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysis |
| title_fullStr | Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysis |
| title_full_unstemmed | Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysis |
| title_short | Flexible robust optimization for Renewable-only VPP bidding on electricity markets with economic risk analysis |
| title_sort | flexible robust optimization for renewable only vpp bidding on electricity markets with economic risk analysis |
| topic | Renewable-only Virtual Power Plant Regret Flexible robust optimization Electricity market |
| url | http://www.sciencedirect.com/science/article/pii/S0142061525001450 |
| work_keys_str_mv | AT hadinemati flexiblerobustoptimizationforrenewableonlyvppbiddingonelectricitymarketswitheconomicriskanalysis AT pedrosanchezmartin flexiblerobustoptimizationforrenewableonlyvppbiddingonelectricitymarketswitheconomicriskanalysis AT lukassigrist flexiblerobustoptimizationforrenewableonlyvppbiddingonelectricitymarketswitheconomicriskanalysis AT luisrouco flexiblerobustoptimizationforrenewableonlyvppbiddingonelectricitymarketswitheconomicriskanalysis AT alvaroortega flexiblerobustoptimizationforrenewableonlyvppbiddingonelectricitymarketswitheconomicriskanalysis |