Assessing Value of Renewable-based VPP Versus Electrical Storage: Multi-market Participation Under Different Scheduling Regimes and Uncertainties

Abstract: This paper compares the participation of Renewable-only Virtual Power Plants (RVPPs) and grid-scale Electrical Storage Systems (ESSs) in energy and reserve markets, evaluating their technical performance, market strategies, and economic outcomes. To ensure a fair comparison, scheduling is analyzed over representative sample days that capture seasonal operating regimes, and the associated uncertainties are explicitly modeled. Two-stage robust optimization frameworks are employed: the RVPP model addresses price, generation, and demand uncertainties, whereas the ESS model considers price uncertainty only. In addition, an algorithm is proposed for sizing the ESS so that its market performance matches that of the RVPP. Simulations cover both favorable and unfavorable scenarios, reflecting seasonal energy limits for dispatchable resources, varying forecast errors for nondispatchable resources, and alternative uncertainty-management strategies. The results provide operators with quantitative guidance on the relative value of each approach.