A medium/long-term auction-based coalition-forming model for a virtual power plant based on stochastic programming

This paper presents a methodology based on auction theory to form a virtual power plant (VPP) coalition of heterogeneous distributed energy resources (DERs). Moreover, in this procedure, the competition between VPPs for attracting DERs is considered. In this model, the VPP has the ability to participate in the day-ahead energy market, become involved in the future energy market and sign bilateral contracts in a medium or long-term time horizon. Also, the ability of arbitrage between different markets is considered for the VPP. Moreover, the risk of energy trading is taken into account with the risk measure method, conditional value at risk. Due to the uncertain nature of pool prices, a stochastic programming approach consist of two stages is developed for modeling the decision-making problem. In the first stage, the VPP participates in an auction and signs the renting capacity contracts with DERs based on auction results. The future market contracts are signed in this stage as well. In the next stage, the decisions regarding bilateral contracts, pool participation, and DERs planning will be made. Also, the uncertainty of the quantity and the price of bilateral contracts are considered. The efficiency of the model is analyzed in a few case studies.