Abstract
As an emerging and active entity in China’s electricity market, electricity selling companies call for a more reliable operational mechanism and new consumption mode to broaden their profit margins. Aiming at distributed power generation-based sales companies and by considering the participation of virtual power plants (VPPs), this paper presents the relevant operating systems in the Chinese power market. Then the paper proposes a new platform for power transactions and optimal dispatch based on a master-slave game optimization model. The model is built so that the main gamer, power sales company, can achieve maximum profit while at the same time the secondary gamer, represented by the VPP attains the lowest internal dispatching cost. The energy of both parties is linked together, and the two parties continuously exchange their own strategies and optimize the operational decisions and scheduling plans iteratively. The results of the investigated case study reveal the benefits to retail electricity companies from adopting the proposed model to aggregate and manage decentralized resources, and optimize decision-making. The platform facilitates the use of controllable loads and distributed energy sources to participate in market transactions on a large scale, and optimize the operational strategies of electric utilities.
Highlights
At present, China is facing a new round of power system reform
Virtual power plant (VPP) technology can integrate a variety of distributed energy sources to participate in the operation of the power market, and provide new ideas for the large-scale utilization of distributed energy resources (DER) and controllable load resources for electricity selling companies
It is worth noting that PV does not count the operating cost of power generation and distributed loads (DL) can be divided into interruptible loads and shiftable loads, participating in VPP scheduling by signing contracts with power sales companies [18, 19]
Summary
China is facing a new round of power system reform. With the full opening of the power selling market and the participation of several companies, the power market has become more dynamic, which imposes more opportunities and challenges to the planning and operation of power selling companies [1,2,3]. Among the multiple types of power sellers participating in the market competition, the main body studied in this article is a generation-type power sales company with distributed power generation capabilities. This type of companies can make use of abundant electricity market and distributed energy resources (DER) to participate based on its own optimization decision-making, in order to achieve large profit margins. Virtual power plant (VPP) technology can integrate a variety of distributed energy sources to participate in the operation of the power market, and provide new ideas for the large-scale utilization of DER and controllable load resources for electricity selling companies. As will be elaborated below, simulation results show the robustness of the proposed game model in maximizing the economic benefits of power selling companies while ensuring safe and stable operation of their regions
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