Risk-constrained Optimization of Virtual Power Plants in Pool and Future Markets

A system for distributing energy for an energy system including a renewable generating source, an energy storage system and a conversion system, wherein the energy storage system stores energy from the renewable generating source and a grid, and supplies energy to the demand load and the grid, and wherein the conversion system directs a flow of energy between the energy storage system, the renewable generating source and the grid, the system comprising:

• a centralized control (CC) system is configured to
• identify a risk tolerance level for the energy system, the risk tolerance level having objectives prioritized relative to one another;
• calculate an objective function based on values including one or more of energy market values, electricity rates, power production and consumption;
• and
• identify an Optimized solution for determining (a) when energy from the renewable generating source and the grid are to be authorized to flow to the energy storage system or the demand load, according to the Optimized solution based on the objective function, and (b) when energy from the energy storage system are to be authorized to flow to the demand load and the grid, according to the Optimized solution,
• wherein the objective function is Optimized using feasibility constraints generated from a lower bound and an upper bound of an information gap region in the risk tolerance level, and another Optimization using both technical constraints and additional constraints generated from a lower boundary for a profit distribution, and
• wherein the Optimized solution is performed to maximize an expected total pool market revenue and an expected total future market revenue, while minimizing an expected total energy cost for the energy system.

A system for distributing energy for a virtual power plant (VPP), the VPP including a renewable generating source and an energy storage device, and a conversion system, wherein the energy storage device is to store energy from the renewable generating source and a grid, and supply energy to a local demand load and the grid, and wherein the conversion system is to direct a flow of energy between the energy storage device, the renewable generating source and the grid, the system comprising:

• a centralized control (CC) system in communication with the renewable generating source, the energy storage device, the grid and the conversion system, and is configured to
• identify a risk tolerance level for the energy system, the risk tolerance level having objectives prioritized relative to one another;
• calculate an objective function based on values including one or more of energy market values, electricity rates, power production and consumption;
• and
• identify an Optimized solution formulated as a risk-constrained Optimization problem for determining (a) when energy is to be authorized to flow from the renewable generating source and the grid to the energy storage device or the demand load, according to the Optimized solution based on the objective function, and (b) when energy is to be authorized to flow from the energy storage device to the demand load and the grid, according to the Optimized solution,
• wherein the objective function is Optimized using feasibility constraints generated from a lower bound and an upper bound of an information gap region in the risk tolerance level, and then another Optimization using both technical constraints and additional constraints generated from a lower boundary for a profit distribution, and
• wherein the Optimized solution is performed to maximize an expected total pool market revenue and an expected total future market revenue, while minimizing an expected total energy cost for the energy system.