Spot Market Clearing Model and Flexibility Premium Assessment Method Considering Flexible Regulation of Virtual Power Plants

Abstract

As an emerging market participant, Virtual Power Plants (VPPs) are gradually gaining access in multiple market trading varieties. They aggregate flexible distributed resources to respond to system dispatch instructions and execute transaction results, expanding the adjustable resources for the new power system. Currently, VPPs primarily participate in the ancillary services market, with secondary involvement in the energy market. With the penetration of a high proportion of new energy sources, the transition of VPPs to the spot market becomes a crucial business expansion direction. This study explores a spot market clearing model adapted for VPPs participation. It allows VPPs to reflect their flexible regulation characteristics by introducing a flexible declaration method, aiming to enhance the matching rate between supply and demand in the electricity market. Through a comparative analysis of clearing results based on different transaction models, an assessment method for the flexibility premium of VPPs is established. This transition in pricing system allows VPPs to shift from energy pricing to a “energy + flexibility” pricing model, thereby improving the competitiveness and value recognition of flexible resource VPPs in the electricity market.

Keywords

• Virtual power plants
• spot market
• clearing model
• flexibility premium