A Review on Risk-Averse Bidding Strategies for Virtual Power Plants with Uncertainties: Resources, Technologies, and Future Pathways

The global energy transition, characterized by the proliferation of intermittent renewables and the evolution of electricity markets, has positioned virtual power plants (VPPs) as crucial aggregators of distributed energy resources. However, their participation in competitive markets is fraught with multifaceted uncertainties stemming from price volatility, renewable generation intermittency, and unpredictable prosumer behavior, which necessitate sophisticated, risk-averse bidding strategies to ensure financial viability. This review provides a comprehensive analysis of the state-of-the-art in risk-averse bidding for VPPs. It first establishes a resource-centric taxonomy, categorizing VPPs into four primary archetypes: DER-driven, demand response-oriented, electric vehicle-integrated, and multi-energy systems. The paper then delivers a comparative assessment of different optimization techniques—from stochastic programming with conditional value-at-risk and robust optimization to emerging paradigms such as distributionally robust optimization, game theory, and artificial intelligence. It critically evaluates their application contexts and effectiveness in mitigating specific risks across diverse market types. Finally, the review synthesizes these insights to identify persistent challenges—including computational bottlenecks, data privacy, and a lack of standardization—and outlines a forward-looking research agenda. This agenda emphasizes the development of hybrid AI–physical models, interoperability standards, multi-domain risk modeling, and collaborative VPP ecosystems to advance the field towards a resilient and decarbonized energy future.