Peak Shaving Value Assessment for New Entities Participating in Power Ancillary Service Market for Load-Side Virtual Power Plant

The emergence of new market entities such as distributed photovoltaics (PV) and distributed energy storage that both consume and produce electricity has profoundly impacted the operational mechanisms of power systems. So, the establishment of a reasonable value assessment system is required to assess the peak regulation value of these new entities in the electricity market. This paper constructs a comprehensive evaluation index for new entities from both peak regulation performance and green attributes, which evaluates the value of new entities in peak regulation. Considering the uncertainties in the output of new entities, kernel density estimation is utilized to describe the output range of new entities that can obtain peak regulation performance indicators of new entities at an appropriate confidence level. Secondly, the green value of new entities is comprehensively considered not only from the green certificate cost of new entities to portray the green value but the risk value of the uncertainties of new entity output. Then, a combination of the Analytic Hierarchy Process (AHP) and entropy weight method is employed for the weights of the green certificate cost and the risk value of the uncertainties. The Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) is applied for peak shaving value evaluation. Finally, the effectiveness of the proposed approach in the paper is verified through simulation analysis.