The mixed-integer linear optimization model of virtual power plant operation

The concept of virtual power plant is developed for two prime reasons. First, to diversify the risk of not meeting the long-term electricity delivery contracts, and secondly to achieve better results on the electricity market. This paper regards the case in which a wind power plant and a solar power plant are joint together with a conventional gas power plant to act on the electricity market as a single agent. The problem is formulated as a mixed-integer linear programming model which incorporates long-term bilateral contracts with weekly forecasted hourly market prices. The aim of the optimization is to maximize the profit of the virtual power plant. The efficiency of the proposed model is rendered through two case studies and detailed analysis is provided.