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Double-Layer Game Bidding Strategy of VPP in Power Peak-Shaving Market

  • Lei Zhang
  • , Yu Peng
  • , Chuankang Miao
  • , Xinpo Lin
  • , Mingliang Mu
  • , Huihui Song*
  • *Corresponding author for this work
  • State Grid Binzhou Power Supply Company
  • Harbin Institute of Technology Weihai

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

As an important platform for distributed energy aggregation and coordination, Virtual Power Plant (VPP) has attracted extensive attention in recent years. With the continuous expansion of VPP scale, optimizing the allocation of various distributed resources through VPP intelligent scheduling has become a key way to improve energy efficiency and reduce operating costs. Aiming at the problems of high resource scheduling cost and unequal income distribution of VPPs participating in the power peak load management ancillary service market, this paper proposes a two-layer game bidding model for VPPs based on blockchain technology. A dynamic resource alliance mechanism incorporating an improved Shapley value is established to quantify the real-time marginal contribution of heterogeneous resources within the VPP and dynamically adjust alliance members in response to fluctuating peak load management demands. Based on game theory, a bilevel optimization model is formulated: an outer layer employs a Stackelberg game where the market operator optimizes the unified clearing price and VPPs' awarded capacity; an inner layer utilizes the ADMM algorithm to coordinate distributed resource scheduling for cost minimization. Case analysis under a representative summer day scenario demonstrates that the proposed approach significantly enhances the daily earnings of participating VPPs while leading to a substantial reduction in the grid's peak-valley load difference. This effectively improves power resource utilization and boosts VPP operational income, providing a theoretical foundation for multi resources collaborative participation in ancillary service markets.

Original languageEnglish
Title of host publicationProceedings - 2025 5th Power System and Green Energy Conference, PSGEC 2025
EditorsZhaoyang Dong, Guojie Li, Zhigang Li
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages205-209
Number of pages5
ISBN (Electronic)9798331537746
DOIs
StatePublished - 2025
Externally publishedYes
Event5th Power System and Green Energy Conference, PSGEC 2025 - Hong Kong, China
Duration: 20 Aug 202523 Aug 2025

Publication series

NameProceedings - 2025 5th Power System and Green Energy Conference, PSGEC 2025

Conference

Conference5th Power System and Green Energy Conference, PSGEC 2025
Country/TerritoryChina
CityHong Kong
Period20/08/2523/08/25

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 7 - Affordable and Clean Energy
    SDG 7 Affordable and Clean Energy

Keywords

  • Blockchain
  • Game
  • Peak-shaving Market
  • VPP

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