Day-ahead Bidding Strategy for the Smart-building Virtual Power Plant Participating in Energy and Frequency Regulation Market

Abstract

With the development of distributed renewable energy and load control technology, virtual power plant (VPP) will become the main agency for the demand-side resources to participate in the electricity market. Considering that the air-conditioning load in the smart-building virtual power plant has good regulatory potential, we first analyze the feasibility of the air-conditioning load to provide frequency regulation (FR) service based on its virtual energy storage (VES) characteristics. On this basis, a day-ahead bidding model for the VPP to participate in both energy and frequency regulation market is established. The model considers the response rate of the air conditioning load to the FR command and the probabilities of acceptance and deployment when the VPP participate in the DA regulation market. And the expected penalty costs of VPP that fail to fully respond to energy and FR market orders are calculated respectively. Finally, the economic advantages of the proposed strategy are illustrated by simulation results.