Maximizing the Social Welfare of Virtual Power Players Operation in Case of Excessive Wind Power

Pedro Faria, Zita Vale, Hugo Morais

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The integration of growing amounts of distributed generation in power systems, namely at distribution networks level, has been fostered by energy policies in several countries around the world, including in Europe. This intensive integration of distributed, non-dispatchable, and natural sources based generation (including wind power) has caused several changes in the operation and planning of power systems and of electricity markets. Sometimes the available non-dispatchable generation is higher than the demand. This generation must be used; otherwise it is wasted if not stored or used to supply additional demand. New policies and market rules, as well as new players, are needed in order to competitively integrate all the resources.
The methodology proposed in this paper aims at the maximization of the social welfare in a distribution network operated by a virtual power player that aggregates and manages the available energy resources. When facing a situation of excessive non-dispatchable generation, including wind power, real time pricing is applied in order to induce the increase of consumption so that wind curtailment is minimized. This method is especially useful when actual and day-ahead resources forecast differ significantly. The distribution network characteristics and concerns are addressed by including the network constraints in the optimization model. The proposed methodology has been implemented in GAMS optimization tool and its application is illustrated in this paper using a real 937-bus distribution network with 20.310 consumers and 548 distributed generators, some of them non-dispatchable and with must take contracts. The implemented scenario corresponds to a real day in Portuguese power system.
Original languageEnglish
Title of host publicationProceedings of EWEA Annual Event 2013
Number of pages8
Publication date2013
Publication statusPublished - 2013
EventEuropean Wind Energy Conference & Exhibition 2013 - Vienna, Austria
Duration: 4 Feb 20137 Feb 2013


ConferenceEuropean Wind Energy Conference & Exhibition 2013
Internet address


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