Fuzzy Optimization for Uncertain Power Market Operations

Handling uncertainties while partaking in electricity markets is a major concern for participating operators. Also, the abundance of prosumers in future distribution systems necessitates the need for a reliable optimization methodology that can handle possible uncertainties, such as those associated with renewable resources or electric vehicles, while participating in the electricity market. Fuzzy optimization offers a traceable and scalable solution that can alleviate this problem. In this chapter, fuzzy linear programming is introduced and applied to the case of a parking garage operator participating in the energy arbitrage market while satisfying the uncertain needs of the owners of electric vehicles (EVs). The uncertainties associated with the EV mobility, such as the EV type mix using the parking lot, their initial and final states of charge, and their departure time, are considered. In addition, another application is presented where a fuzzy optimization problem is formulated for the case of a virtual power plant (VPP), operating a mix or resources and loads. The purpose of the problem formulation is to provide an optimal bidding strategy for a VPP participating in the wholesale markets while considering the uncertainties associated with wind and solar generations. The main objective is to introduce a framework that maximizes the VPP’s profits.