Bidding strategy for a virtual power plant for trading energy in the wholesale electricity market

Virtual power plants (VPPs) are an effective way to increase renewable integration. In this PhD research, the concept design and the detailed costs and benefits of implementing a realistic VPP in Western Australia (WA), comprising 67 dwellings, are developed. The VPP is designed to integrate and coordinate an 810kW rooftop solar PV farm, 350kW/700kWh vanadium redox flow batteries (VRFB), heat pump hot water systems (HWSs), and smart appliances through demand management mechanisms. This research develops a robust bidding strategy for the VPP to participate in both load following ancillary service (LFAS) and energy market in the wholesale electricity market in WA considering the uncertainties associated with PV generation and electricity market prices. Using this strategy, the payback period can be improved by 3 years (to a payback period of 6 years) and the internal rate of return (IRR) by 7.5% (to an IRR of 18%) by participating in both markets. The daily average error of the proposed robust method is 2.7% over one year when compared with a robust mathematical method. The computational effort is 0.66 sec for 365 runs for the proposed method compared to 947.10 sec for the robust mathematical method. To engage customers in the demand management schemes by the VPP owner, the gamified approach is adopted to make the exercise enjoyable while not compromising their comfort levels. Seven gamified applications are examined using a developed methodology based on Kim’s model and Fogg’s model, and the most suitable one is determined. The simulation results show that gamification can improve the payback period by 1 to 2 months for the VPP owner. Furthermore, an efficient and fog-based monitoring and control platform is proposed for the VPP to be flexible, scalable, secure, and cost-effective to realise the full capabilities and profitability of the VPP.