In this thesis, we have focused on the practical application of virtual power plants in developed Western markets from the perspective of electricity supplier and electricity trading company. We have presented the electricity market in Europe, its development and challenges faced by market participants, thus confirming the need for the introduction of virtual power plants.
We have presented the concept of virtual power plants and illustrated various examples for uses of virtual power plants. We have shown the valuation methodology of flexible production from virtual power plants designed for exploiting of price volatility in electricity market. We have illustrated the valuation theory of production flexibility from virtual power plant with a realistic example and have presented the outcome of the evaluation on practical example of virtual power plant in German electricity market.
We have introduced the importance of hedging portfolio with flexible production from virtual power plants and presented different methodologies of hedging. We have supported hedging strategy with practical example.
At the end we have shown the challenges the owners of flexible production are facing during the delivery period.
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