Optimization of Virtual Power Plantin Nordic Electricity Market

Sammanfattning: With the world becoming more conscious about achieving 1.5-degree scenario as promisedby the most powerful economies of the world, much needed push was received by the renewable energy technology providers.  This has led to an increased a share of energy production from renewables and a decrease in the fossil-based energy production with the overall energy production.  As a result, a large share of inertia of the system is lost and a big challenge in the name of flexibility is presented to the world of energy.  Virtual Power Plant is quite a novel and new concept to address the new generation challenge of flexibility and can offer various other benefits like competitivity,reliability, accessibility etc.  In this thesis, a commercial virtual power plant is studied by developing a mixed integer linear model to emulate the trading for short term markets with the risk mea- sures in a Nordic Electricity Framework.  Further, the developed model is implemented in a quite a new mathematical programming language known as “Julia”.  The model is implemented using a hypothetical portfolio consisting of a dispatchable unit, a battery system and a wind farm in the SE3 bidding zone of Sweden.  An investigation on varia- tion of imbalance costs in three different modes also has been carried out, to demonstratethe advantage of such a virtual power plant concept in reducing the imbalance costs.