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Main Authors: Feng, Changsen, Huang, Zhongliang, Lin, Jun, Wang, Licheng, Zhang, Youbing, Wen, Fushuan
Format: Preprint
Published: 2025
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Online Access:https://arxiv.org/abs/2503.04854
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author Feng, Changsen
Huang, Zhongliang
Lin, Jun
Wang, Licheng
Zhang, Youbing
Wen, Fushuan
author_facet Feng, Changsen
Huang, Zhongliang
Lin, Jun
Wang, Licheng
Zhang, Youbing
Wen, Fushuan
contents The declining provision of inertia by synchronous generators in modern power systems necessitates aggregating distributed energy resources (DERs) into virtual power plants (VPPs) to unlock their potential in delivering inertia and primary frequency response (IPFR) through ancillary service markets. To facilitate DER participation in the IPFR market, this paper proposes an aggregation model and market mechanism for VPPs participating in IPFR. First, an energy-reserve-IPFR market framework is developed, in which a VPP acts as an intermediary to coordinate heterogeneous DERs. Second, by taking into account the delay associated with inertial response, an optimization-based VPP aggregation method is introduced to encapsulate the IPFR process involving a variety of DERs. Third, an energy-reserve-IPFR market mechanism with VPP participation is introduced, aiming to minimize social costs, where stochastic deviations of renewable energy generation are explicitly modeled through chance-constrained reformulations, ensuring that the cleared energy, reserve, and IPFR schedules remain secure against forecast errors. Case studies on IEEE 30-bus and IEEE 118-bus systems show that the nadir and quasi-steady-state frequencies are reproduced by the VPP aggregation model with a mean absolute percentage error <= 0.03%, and the proposed market mechanism with VPP participation reduces the total system cost by approximately 40% and increases the net profit by about 30%.
format Preprint
id arxiv_https___arxiv_org_abs_2503_04854
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Aggregation Model and Market Mechanism for Virtual Power Plant Participation in Inertia and Primary Frequency Response
Feng, Changsen
Huang, Zhongliang
Lin, Jun
Wang, Licheng
Zhang, Youbing
Wen, Fushuan
General Economics
Economics
The declining provision of inertia by synchronous generators in modern power systems necessitates aggregating distributed energy resources (DERs) into virtual power plants (VPPs) to unlock their potential in delivering inertia and primary frequency response (IPFR) through ancillary service markets. To facilitate DER participation in the IPFR market, this paper proposes an aggregation model and market mechanism for VPPs participating in IPFR. First, an energy-reserve-IPFR market framework is developed, in which a VPP acts as an intermediary to coordinate heterogeneous DERs. Second, by taking into account the delay associated with inertial response, an optimization-based VPP aggregation method is introduced to encapsulate the IPFR process involving a variety of DERs. Third, an energy-reserve-IPFR market mechanism with VPP participation is introduced, aiming to minimize social costs, where stochastic deviations of renewable energy generation are explicitly modeled through chance-constrained reformulations, ensuring that the cleared energy, reserve, and IPFR schedules remain secure against forecast errors. Case studies on IEEE 30-bus and IEEE 118-bus systems show that the nadir and quasi-steady-state frequencies are reproduced by the VPP aggregation model with a mean absolute percentage error <= 0.03%, and the proposed market mechanism with VPP participation reduces the total system cost by approximately 40% and increases the net profit by about 30%.
title Aggregation Model and Market Mechanism for Virtual Power Plant Participation in Inertia and Primary Frequency Response
topic General Economics
Economics
url https://arxiv.org/abs/2503.04854