Risk-averse probabilistic framework for scheduling of virtual power considering demand response and uncertainties

In this paper, a risk-based stochastic framework is presented for short-term energy and reserve scheduling of a virtual power plant (VPP) considering demand response (DR) participation. The VPP comprises several dispatchable generation units, battery energy storage systems (BESSs), wind power units, and flexible loads. The proposed scheduling framework is formulated as a risk-constrained stochastic program to maximize the VPP's profit considering uncertainties of loads, wind energy and electricity prices as well as N-1 contingencies. The proposed model considers both supply and demand-sides capability for providing and deploying reserves in order to optimize the use of resources while satisfying N-1 security and other constraints. Moreover, the effect of risk-aversion on decision making of the VPP in the offering/bidding power and required reserve services is investigated by implementing conditional value-at-risk (CVaR) in the optimization model. The proposed scheme is implemented on a test VPP and the energy and reserve scheduling with and without DR participants is addressed in detail through a numerical study. Moreover, the effects of the operator's risk-averse behavior on the VPP energy and reserve management and its security indices are investigated.