Trading Incentive Mechanism and Response Model for High-Frequency Interaction Between Virtual Power Plants and Main Grid Under Spot Markets

As the energy market moves toward decentralization and high-frequency trading, virtual power plants’ (VPP) involvement in and responsiveness to the spot market — an integration platform for dispersed and renewable energy resources — has grown significantly. The response model and trading incentive mechanism for high-frequency interactions between VPPs and the main grid under the spot market are covered in this study. First, a theoretical analysis of market participation incentives is conducted, taking into account variables, including market participation, response speed, and influence, as well as the design principles of reward and compensation schemes. Second, a data-driven forecasting and optimization model is put out to address how VPPs react in real time to variations in energy prices and system load. There is more discussion about the significance of technical infrastructure, focusing on the integration and optimization of data processing and communication systems. To ensure that VPPs participate in market transactions fairly and transparently, the critical responsibilities of market risk management and regulatory compliance are finally examined. This study combines the viewpoints of market regulation, technology innovation, and economics to offer theoretical underpinning and useful advice for comprehending and maximizing the functions and effects of VPPs in contemporary energy markets.