Operational Optimization Strategy for Virtual Power Plants Considering Carbon Trading and Demand Response

To enhance the carbon reduction capacity and economic performance of virtual power plants (VPPs), an operational optimization method incorporating various flexible loads into demand response is proposed. First, a diversified model of flexible loads within the VPP is developed by classifying them based on their distinct characteristics. Then, an improved tiered carbon trading mechanism is formulated by optimizing the traditional stepped carbon pricing model to encourage carbon reduction across the system. Subsequently, an operational optimization model is constructed with the objective of minimizing total operational costs, encompassing both system operational and carbon trading costs, and solved using the CPLEX solver. Finally, three scenarios are designed for comparative analysis to verify the model's effectiveness. Results indicate that establishing appropriate base carbon prices and interval lengths can jointly optimize low-carbon and economic performance. The improved tiered carbon trading mechanism and demand response strategies effectively reduce VPP operational costs and carbon emissions, yielding substantial economic and environmental benefits.

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Publication Details

Published
2025-01-10
DOI
https://doi.org/10.1109/iceaai64185.2025.10956806
Primary Topic
Smart Grid Energy Management
Type
article
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article

Operational Optimization Strategy for Virtual Power Plants Considering Carbon Trading and Demand Response

Wenliang Li, Peng Wang, Chao Guo, Tao Zhou et al.
Smart Grid Energy Management
article

Operational Optimization Strategy for Virtual Power Plants Considering Carbon Trading and Demand Response

Wenliang Li, Peng Wang, Chao Guo, Tao Zhou, Sheng Yue
article en

Abstract

To enhance the carbon reduction capacity and economic performance of virtual power plants (VPPs), an operational optimization method incorporating various flexible loads into demand response is proposed. First, a diversified model of flexible loads within the VPP is developed by classifying them based on their distinct characteristics. Then, an improved tiered carbon trading mechanism is formulated by optimizing the traditional stepped carbon pricing model to encourage carbon reduction across the system. Subsequently, an operational optimization model is constructed with the objective of minimizing total operational costs, encompassing both system operational and carbon trading costs, and solved using the CPLEX solver. Finally, three scenarios are designed for comparative analysis to verify the model's effectiveness. Results indicate that establishing appropriate base carbon prices and interval lengths can jointly optimize low-carbon and economic performance. The improved tiered carbon trading mechanism and demand response strategies effectively reduce VPP operational costs and carbon emissions, yielding substantial economic and environmental benefits.

Jinan Institute of Quantum Technology (CN), Shanghai Electric (China) (CN)
Openalex Percentile: Top 94%
Smart Grid Energy Management
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