Bidding strategy of the virtual power plant considering green certificates and carbon trading

Abstract

This paper examines the impact of green certificates and carbon trading on virtual power plants (VPPs) in the day-ahead energy and frequency modulation assistance service combined market. VPPs, which integrate numerous distributed energy systems and adjustable loads, provide a new idea for coordination management among multiple subjects in market competition. The study proposes a bidding strategy model to maximize VPP economic benefits, considering the interaction mechanism of green certificate-carbon trading and market environment constraints. The proposed model is verified through simulation cases, in which different scenarios of the existence of green certificates and carbon trading mechanism are considered. The impact of green certificates and carbon trading on VPP bidding benefits is explored, and the results show that VPPs have superiority compared to the traditional bidding output of a VPP. The availability of green certificates and carbon trading enables the economic income of VPPs to be more diversified and reflects the low-carbon attribute of the renewable energy system, thereby promoting the low-carbon transformation process of the VPP output structure.

Keywords

• Virtual power plant
• Green certificate
• Carbon trading
• Bidding strategy
• Joint market