Considering the Uncertainty of Renewable Energy: Bidding Strategy for Virtual Power Plants in the Monthly Centralized Market

The execution of the energy transition and “dual carbon” objectives is progressively enhancing the penetration rate of renewable energy in the new power system. This paper examines the bidding strategy for virtual power plants (VPPs) incorporating renewable energy within the rolling trading framework of the mid-to-long-term centralised electricity market, in response to the challenges posed by power generation uncertainty and market-driven consumption due to large-scale renewable energy integration. An outer clearing model is developed to enable VPP participation, with the objective of maximising societal welfare, hence determining transaction volumes and clearing prices. Subsequently, taking into account the predicting inaccuracies of wind and solar energy, an internal optimisation model is formulated with the aim of maximising the income of the Virtual Power Plant (VPP), therefore measuring the incremental revenue. A dual-layer optimisation model appropriate for Virtual Power Plant (VPP) participation is developed and subsequently utilised to analyse the optimised bidding strategies for VPPs in the medium to long-term monthly centralised market.