An Intelligent Bidding Strategy based on Social Welfare of Virtual Power Plant considering Carbon Trading

Virtual Power Plant is the concept which enables the Distributed Energy Resources units to take part in the energy market which aims to maximize the profit with the reduction in the operating cost of the system. It also helps to enhance the efficiency and reliability of the existing system. Distributed Energy Resources units are the renewable energy resources which may or may not be dispersed geographically and so able to reduce the carbon emission, which is becoming a major issue in the climate change in the world. This paper presents a strategic bidding model of the VPP units participating in the carbon integrated day ahead electricity market. This paper calculates the carbon credit emitted by the generation from the conventional power plant and Micro Turbine unit with the energy management strategy within the Virtual Power Plant. With the consideration of carbon credit in the electricity market, the presented model will able to reduce the emission and hence improves the environmental quality. In bidding model forecasting of renewable sources has been done with machine learning so that it will results in good accuracy and the penalty can be reduced. The work also considers profit maximization of consumer as well as producer by examining the social welfare of the market presented. The case analysis is done with and without the carbon credit in the model and verified.