Risk-constrained demand response and wind energy systems integration to handle stochastic nature and wind power outageInspec keywordsOther keywords

Participation of wind generation in electricity markets is mainly restricted by the intermittent nature of wind and their possible outages. The great potential of flexible loads from demand response (DR) can be seen as a cost-effective option to handle such issues. In this regard, this study investigates the operation of a virtual power plant (VPP) that is constructed by a DR aggregator and wind power aggregator to handle the inherent volatility of wind generators as well as the possible wind power outage. A stochastic programming formulation in three stages is offered for the VPP that participates in the balancing, intraday and day-ahead markets. The model for DR is developed based on the elasticity concept, and the scenarios related to severe outages of the wind generators are considered. In order to manage the risk of the problem, conditional value-at-risk has also been employed in offering strategy. Case studies demonstrate that the VPP offering strategy can efficiently solve the balancing problem as well as outage risk of the wind generation while increasing the net profit in case of joint operation.