Two-stage Market Bidding Model of Virtual Power Plant Considering Demand Response

Virtual power plants provide framework and technical support for large-scale new energy power pouring into the power grid, meanwhile they also provide the security for themselves participating electricity market. For this reason, it becomes a hot research topic to establish an economical and reliable bidding model for virtual power plants. Under the background of double settlement mode and deviation assessment, a bidding model of the virtual power plant, in which the participation of incentive demand response was taken into account, was proposed. Considering the coupling of day-ahead market and realtime market and that of current realtime market and follow-up real-time market, the day-ahead and realtime bidding strategies of virtual power plant were obtained. Besides, the concept of dual-factor excitation factor was proposed to motivate the positivity of realtime demand response and to reduce the deviation of punishment of virtual power plant, at the same time the price difference could also be taken to make profit. Finally, the simulation result of a 38-bus RBTS distribution system show that while the potential of users’ demand response is fully tapped, by use of the proposed bidding strategy the economic benefit of virtual power plant could be improved. The proposed model provides reference for virtual power plant participating in electricity spot market.