Enhancing Robust Multi-Market Participation of Renewable-Based VPPs through Flexible Resources

Abstract

In the transition toward a sustainable power system, renewable-based Virtual Power Plants (RVPPs) have emerged as a promising solution to the challenges of integrating renewable energy sources into electricity markets. Their viability, however, depends on effective market participation strategies and the ability to manage uncertainties while leveraging flexible resources. This paper analyzes the impact of different flexible resources - such as concentrated solar power plants, hydro plants, biomass plants, and flexible demand - on the participation of RVPPs in energy and reserve markets. Multiple sources of uncertainty in generation, consumption, and electricity prices are addressed using a two-stage robust optimization approach. The contribution of different technologies to RVPP profitability is evaluated through a marginal contribution method, ensuring fair allocation of profits among them according to their actual role in energy and reserve provision across markets. Simulations for an RVPP in southern Spain demonstrate how strategic decisions and the availability of flexible resources influence viability, market participation, and unit scheduling.