Research on Bidding Strategy of Virtual Power Plant Considering Risk Preference

Abstract

Virtual power plant (VPP) aggregates power generation resources with different physical characteristics and user-side resources to participate in the bidding of the power market as a whole, which can complement resources with different physical characteristics and enhance market competitiveness. However, the internal distributed power supply and demand response resources are uncertain, which inevitably brings risks to VVP operation. Based on the analysis of the operating costs and profits of VVP, this paper considers the uncertainties of distributed power sources, including wind power generation, photovoltaic, etc., takes the prediction errors of wind power and photovoltaic units as random factors, and introduces condition value at risk (C $V$ aR) to measure the uncertain risks of wind power and photovoltaic. A bidding model of VPP considering risk preference is established. The influence of risk preference on bidding strategy and profits of VVP is analyzed with an example. The results show that if VVP adopts too conservative bidding strategy or too aggressive bidding strategy, the profits of VVP will be affected.