A Wasserstein-distance-based distributionally robust chance constrained bidding model for virtual power plant considering electricity-carbon trading

Virtual power plant (VPP) can aggregate distributed energy resources (DER) and controllable loads to participate in the bidding of electricity market and carbon trading market. However, the uncertainty of renewable power production brings high transaction risks to VPP. Given this background, this paper proposes a novel Wasserstein-distance based two-stage distributionally robust chance constrained (DRCC) bidding model for VPP participating in the electricity-carbon coupled market. The uncertainties are modelled as an ambiguity set based on Wasserstein distance, in which the two-sided chance constraints are guaranteed satisfied. In the first stage, VPP's revenue is maximized according to the forecast information. In the second stage, the re-dispatch measures are determined to hedge against the perturbation of uncertainties under the worst-case distribution within the ambiguity set. Finally, a reformulation approach based on strong duality theory and conditional value-at-risk (CVaR) approximation is proposed to transform the DRCC problem into a tractable mixed-integer linear programming (MILP) framework. Case studies are carried out on the IEEE 30-bus system to verify the effectiveness and efficiency of the proposed approach. This paper proposes a novel Wasserstein-distance based two-stage distributionally robust chance constrained (DRCC) bidding model for virtual power plant (VPP) participating in the electricity-carbon coupled market. The uncertainties are modelled as an ambiguity set based on Wasserstein distance, in which the two-sided chance constraints are guaranteed satisfied.image