A bidding model for virtual power plants to participate in demand response in the new power market environment

Abstract

Members of the virtual power plant(VPP) are extremely price-sensitive, and effective bidding strategies can help virtual power plant operators increase user stickiness and loyalty, increase their enthusiasm for participating in demand response(DR), and expand the profit margin of virtual power plants.This paper proposes a bidding strategy in which virtual power plants participate in demand response. Focus on the study of clearing price models and cost models, comprehensively consider current market price influence factors and various resource output uncertain factors.With the goal of maximizing the profit obtained by participating in demand response, we will screen the members of the VPP and help VPP formulate a quotation strategy.At the end of the article, we select three examples to verify the effectiveness of the bidding model. In the three demand period scenarios, profits increased by 20.82%, 16.58%, and 10.82% after using the bidding model.