Model of virtual power plant with energy storage and adjustable load participating in energy market and auxiliary service

With the increasing emphasis on carbon peaking and carbon neutrality, the power system faces the dual challenge of reducing carbon emissions while meeting the growing demand for electricity. This paper explores the potential of Virtual Power Plants (VPPs) to balance renewable energy integration and provide ancillary services through an optimization model. By incorporating distributed resources such as energy storage systems and adjustable loads, VPPs can enhance grid stability and participate in peak-shaving and frequency regulation markets. The proposed model formulates an objective function to maximize the profitability of VPPs, accounting for revenue from peak-shaving services and energy market arbitrage. Key constraints include energy storage dynamics and load adjustability, enabling the VPP to respond flexibly to electricity price variations and optimize its operations. With a case study of a single-node energy system, the model’s efficacy is validated under conditions reflecting typical summer demand peaks. The simulation results show that strategic charging and discharging of energy storage, combined with load adjustments, allow the VPP to reduce peak loads and utilize low-cost energy periods effectively. The findings suggest that VPPs play a crucial role in modernizing the power grid, especially as renewable penetration increases. Future research will further refine the model by incorporating additional uncertainties and network constraints to enhance the applicability of VPPs in real-world scenarios.