Interactive Dispatch Modes and Bidding Strategy of Multiple Virtual Power Plants Based on Demand Response and Game Theory

This paper examines operation models of multiple virtual power plants (multiVPPs), aiming at unified management of the multiVPP through VPP central controller, which reveals the controllability of the VPP as source and load in general. Two operation models will be introduced in this paper: 1) VPP dispatch model; and 2) the game theoretic model for multiVPP dispatch. In the VPP dispatch model, considering interactive coordination between VPP and energy consumers, a demand response model based on time-of-use pricing mechanism and interruptible loads is employed. And then the optimal results of VPP dispatch model are applied in the game theoretic model for multiVPP dispatch. During the process of market competition, the bidding strategy of each VPP is determined by its affordable power output and fuel cost. To solve the inherent variability and unpredictability of the renewable generation sources, the multi-time scale rolling scheduling strategy is adopted. Finally, taking the multiVPP, which consists of various distributed generations and battery storage devices, as an example, variables including transferred load, compensation capacity, optimal bidding strategy, and profits for each VPP are obtained. From the analysis of the results, the method serves as a foundation for dispatch of multiVPP.