Optimal Operation Strategies for Economically Efficient and Reliable Peer-to-Peer Energy Markets in Regional Virtual Power Plants

Abstract

This Thesis comprehensively studies a novel integration approach for the economically efficient optimisation and operation of centralised regional virtual power plants (VPPs) by combining a holistic peer-to-peer (P2P) energy trading market in the internal VPP environment. The Thesis aims to achieve collaborative success and solve existing challenges in both areas. A regional VPP aggregates and coordinates the geophysically proximate distributed energy resources for centrally enhanced power generation. However, the economic efficiency and incentives offered to their customers are limited, leading to passive participation and investment. Meanwhile, P2P energy trading, enabling direct participant transactions and improving market flexibility, is challenged by metering issues, which hinder transaction recognition and acceptance by authorities such as retailers and regulators.

This study develops an innovative holistic P2P model integrated into a centralised regional VPP's internal environment, considering market and network operations simultaneously. A significant contribution of the research is dedicated to devising risk management strategies, ensuring the reliability of this integrated model and the trustworthiness among the participants. From the perspective of the VPP coordinator, a novel reputation management system, motivated by the finance sector, is designed to facilitate risk management of trading partners and compensate for information symmetry. From the perspective of the P2P participants, an advanced self-reservation concept is proposed for risk management strategies incorporating conditional value-at-risk and consensus-based alternating direction method of multipliers mathematically.

Through comprehensive case studies and insightful discussion, the Thesis demonstrates the boosted incentives and attractiveness of the regional VPPs. It addresses the metering issues faced by P2P markets and establishes fair and trustworthy trading environments.