Operational Strategy of Virtual Power Plant for Participating in Coupled Peak-Shaving and Carbon Markets

This study presents a novel optimization strategy designed to maximize the operational revenue of Virtual Power Plants (VPP) by addressing the complexities of dual participation in power peak-shaving and carbon markets. The model integrates wind turbine output variability., gas turbine operational constraints, and curtailment costs using a multi-market optimization framework. By employing scenario generation and day-ahead market data, this strategy dynamically adjusts VPP output to enhance profitability while ensuring compliance with stringent carbon emission regulations. Simulation results demonstrate the significant economic and environmental benefits of the proposed approach, positioning VPP as key players in the transition to sustainable energy systems.