A Game Model of Virtual Power Plant Participating in Electric Power Market with Consumption Weight

Abstract

The electric power market reform and renewable energy consumption mechanism have achieved some success in China in recent years. However, problems such as wind and solar power curtailment and large carbon emissions still exist. Based on the framework of virtual power grid, this paper proposes a novel virtual power plant market game model considering the clean energy consumption weight factor to find a way out of the dilemma from the perspective of power market. The model is constructed in the form of two-layer. The goal of the upper layer is to maximize the profit of the virtual power plant and the lower layer is to minimize the power purchase cost of the system operator. Considering the mutual coupling between the upper and lower optimal results, the two-layer game model is reduced to a single nonlinear model with KKT (Karush Kuhn Tucker) theorem. And the nonlinear model is approximately linearized based on the strong duality theorem and big M expansion method to obtain the optimal solution efficiently. The project example results show the fluctuation of clearing price is reduced, which is more conducive to the smooth operation of the power market.