Research on the designation of business model and bi-level optimization scheduling strategy of a VPP in energy market

¹ Economic Research Institute of State Grid Shanghai Electric Power Company, Shanghai 200233, China
² School of Electronic Information and Electrical Engineering, Shanghai Jiao Tong University, Minhang District, Shanghai, 200240, China

^* Corresponding author’s e-mail: lvr@sh.sgcc.com.cn

Abstract

With the rapid development of distributed energy resource, a more powerful market operation and energy management system is in great demand for a more precise scheduling strategy. And owing to the advantages in communication and control, virtual power plant (VPP) can provide solutions to these problems. In this paper, the business orientation and service plan are discussed first. Then the mathematical model of the settled market is established to figure out the scheduling strategy of participating in energy market. And a bi-level optimization model is built, with the upper level of maximizing the profits of VPP and lower level of clearing process of energy market. Finally, the scheduling scheme under typical scenarios is discussed in the example, and the ability of the VPP to adapt to the price change is analyzed. It can be seen that the VPP can adjust its own load and processing in the face of price fluctuation to achieve the maximum benefit.