Cooperative Decision Making of DERs in a Joint Energy and Regulation Market in Presence of Electric Vehicles

Abstract

Today due to increasing and evolving of electrical grids, the optimal and profitable energy production is among producers' major concerns. Thus, conventional ways of production and trading energy are being replaced by modern economical procedures. In addition, distributed energy resources (DERs) in form of renewable and conventional resources as well as responsive loads play an important role in this issue. The mutual problem of DERs in joining power market is their rather small production compared to other units and intermittency of the corresponding resources. Forming coalition is an effective way to overcome DER difficulties for participating in power market. In this paper the problem of optimal bidding strategy of DERs integrated as a virtual power plant is investigated. Based on the proposed method, cooperative game is employed to obtain optimal DER outputs and the results are compared with individual non-cooperative bidding model. In order to mitigate the intermittent nature of renewable energies, existence of electric vehicles (EVs) as energy storage facilities in the proposed coalition is investigated. Due to the associated uncertainties regarding EVs and DERs, a stochastic optimization model is used. Finally, Shapley value method is employed to obtain corresponding allocated profits. Results show the eminence of forming coalition in terms of acquiring payoffs and optimal contributions.

Keywords

• Distributed Energy Resources
• Virtual Power Plants
• Electrical Vehicles
• Coalition
• Cooperative Game Theory.