Thesis Proposal Master Energy

TitleEN: ReducingriskforVPPoperatorsincludingCHP,heat
In the context of the decarbonization of the energy sector, decentralized heat and power
generation will likely play an important role (to reduce CO2 emissions and improve energy
efficiency). Due to the characteristically low generation capacity of distributed generation
(DG), it is expected that several generators and storage devices will be aggregated in what is
known as a Virtual Power Plant (VPP) in order to improve the combined characteristics and
to compete on the wholesale market.
VPP that include un-controllable generators in its portfolio face large uncertainty when
bidding in the whole sale market. It is assumed that aggregating these uncontrollable
generators together with flexible loads can reduce the risk and increase the profits [1].
The objective of this thesis is to assess these effects. To this aim a stochastic model will be
developed. In a first approach only the un-controllable generator and a constant electric
demand will be considered, afterwards dispatchable devices such as CHP, Heat pumps and
thermal storage will be included in the system to increase the flexibility of the system and
help to meet the internal demand. Finally a risk measure strategy will be incorporated in the
system in order to account for the risk attitude of the VPP operator [2][3].
J. Matevosyan and L. Soder, “Minimization of imbalance cost trading wind power on
the short-term power market,” Power Systems, IEEE Transactions on, vol. 21, no. 3.
pp. 1396–1404, 2006.
C. Triki, A. J. Conejo, and L. P. Garcés, “Stochastic Optimization Methods in Finance
and Energy,” vol. 163, 2011.
H. M. I. Pousinho, V. M. F. Mendes, and J. P. S. Catalão, “A risk-averse optimization
model for trading wind energy in a market environment under uncertainty,” Energy,
vol. 36, no. 8, pp. 4935–4942, Aug. 2011.
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