Equilibrium Analysis on Deep Peak Regulation Market Considering the Participation of Virtual Power Plants

Abstract

Virtual power plant could effectively regulate the internal distributed energy, and could be used as an emerging peak regulation resource to cope with the increasing penetration rate of renewable energy. The participation of virtual power plants in the deep peak regulation market would affect the competition result. Firstly, the cost of each market entity participating in the deep peak regulation market is analyzed, and the corresponding deep peak regulation market bidding model on this basis is established. Then, based on the Nash equilibrium theory, an equilibrium model of deep peak regulation market is established. Finally, the nonlinear complementary method is applied to solve the equilibrium model, and the rationality and effectiveness of the proposed model are verified through typical case analysis. The effectiveness of above-mentioned model and method is validated by the analysis on given example, and it is shown that the virtual power plant could reduce the market clearing price and the corresponding payment cost of peak regulation service buyers. Besides, the peak regulation pressure of thermal power units could be reduced.