Optimal demand response for a virtual power plant with a hierarchical operation framework
Xin Liu, Zhenyong Niu, Li Yang, Linlin Hu, Junbo Tang, Ying Cai, Shunqi Zeng
Abstract
There are significant uncertainties and variations in demand response under different operating conditions and incentives. These challenges hinder virtual power plants (VPPs) from fully leveraging the regulatory capabilities of flexible resources. To address this issue, this study introduces an optimal demand response (DR) approach for VPPs, featuring a hierarchical operational framework that accounts for the uncertainty in user participation in DR. First, a refined DR model is developed, incorporating response characteristic parameters based on the DR mechanism. Second, a two-stage distributionally robust optimization model is formulated within a market trading framework for energy scheduling of VPPs. This model aims to minimize operational costs while considering uncertainties in DR. Additionally, the ambiguity set for the uncertainty probability distributions is constructed using a data-driven method. Finally, the study presents an optimal DR disaggregation method that aims to maximize aggregator satisfaction and accounts for the impact of load rebound on the optimization results. Simulation results demonstrate that the proposed method significantly reduces the deviation in demand response by 40 % and enhances the profit of the VPP by 20.7 %.