A two-stage optimization of a VPP simultaneously participating in FCR and Day-ahead energy market

Certainly! Apologies for the previous omissions. Below is the complete LaTeX document that includes all the requested sections, arguments, code snippets, and proofs, organized logically into a single cohesive document. “‘latex Considering the conventional power plant phase-out, Distributed Energy Resources (DERs) operators are required to provide ancillary services and motivated to possibly increase their revenues. This paper proposes a novel Virtual Power Plant (VPP) operation framework that simultaneously co-optimizes participation in the Day-Ahead energy market and the Frequency Containment Reserve (FCR) market under realistic European market prices and regulatory constraints. A two-stage Mixed-Integer Linear Programming formulation is developed to aggregate a heterogeneous portfolio of DERs, including hydro power plants (HPPs), photovoltaic systems (PVs), and battery energy storage systems (BESSs), for FCR provision. By considering technical, regulatory, and market-oriented aspects, this research aims to analyse economically viable VPP operation. In contrast to existing studies, we test the integration of PVs and asymmetric procurement of FCR of single DERs. The impact aims to increase integration of renewable DERs for FCR and revenue opportunities for DER operators in future, compared to current government subsidies. Simulation results demonstrate the benefits of DER diversity for FCR procurement. However, for the investigated case study, the results indicate no economical advantage over government subsidies.