Investment portfolio based multi energy capacity allocation of virtual power plant

Output uncertainties of renewable energy distributed generators lead to profit fluctuation of a virtual power plant. Take a wind/photovoltaic/hydropower distributed power generation demonstration project in Yunnan Province as an example. Based on the basic concept of the portfolio, it is proposed to have the output uncertainty of a virtual power plant mapped onto the price uncertainty. On the basis of a single period capacity allocation model, another two models are developed considering the penalty for output deviation and multi-period capacity allocation, respectively. Numerical examples show that the proposed model is effective in quantitatively analyzing the allocation problem by considering the complementary role among multi renewable energy distributed generators, the electricity prices, the reserve price, and risk preference. ©2015 Automation of Electric Power Systems Press