Hierarchical robust Day-Ahead VPP and DSO coordination based on local market to enhance distribution network voltage stability

Abstract

As distributed energy resources (DER) are increasing, a variety of business models and markets are appearing. Business models such as virtual power plants (VPPs) contribute to enhanced stability of the power system while improving the profits of participating resources. However, the uncertainty of the behavior of DERs and the resulting stability issues are a major barrier to DER deployment and require a coordination framework between grid operators and business models to overcome. Therefore, in this paper, a hierarchical robust day-ahead coordination of a VPP and distribution system operator (DSO) based on the local market is proposed to improve the voltage stability of the distribution network by considering the uncertainty of DERs. For fairness reasons, the contribution of DERs to the distribution system can be addressed by a market-based approach. Local markets are divided into local energy markets (LEM) and local flexibility markets (LFM), which can consider the uncertainty and profitability of DERs. First, the DER determines the seller and buyer status of the LEM based on its self- scheduling with expected prices and is matched based on a double-auction mechanism. At this time, the worst-case scenario of load and renewable energy generation predicted by the Gaussian process (GP) is considered. The mismatched amounts in the LEM are aggregated by the VPP and bid into the wholesale energy market (WEM) operated by the TSO (Transmission system operator). Subsequently, DSO operates a LFM that coordinates microgrid (MG) and VPP on the distribution grid to increase voltage stability. The LFM and WEM problems are considered as interval optimization in the form of mixed integer linear programming and are applied together. The flexibility supply resulting from the adjustment of VPP is compensated by a loss-sensitivity-based flexibility price. Since voltage stability exists in upper and lower bounds, the upper and lower bound of net load through GP-based forecasting is considered along with the linearized network constraints. The results are validated through Monte-Carlo simulation-based scenarios on IEEE benchmark system in MATLAB environment. As a result, it is proved that the proposed model improves the distribution network voltage stability and the profit of the participants.

Keywords

• Virtual Power Plant
• Local Energy Market
• Local Flexibility Market
• VPP-DSO Coordination
• Robust Optimization