Optimal Clearing Strategy for Day-Ahead Energy Markets in Distribution Networks with Multiple Virtual Power Plant Participation

Constrained by current market mechanisms, small-scale virtual power plants (SS-VPPs) on the distribution network side struggle to exert their market characteristics. To address this, this paper proposes a trading framework and operational strategy for distribution-side SS-VPPs to participate in the day-ahead energy market. First, an operation and trading framework for distribution networks involving SS-VPPs is proposed. This framework comprehensively considers the clearing process of the electricity energy market, the operation mechanism of the distribution network, and the cost structures of various stakeholders, while clarifying the day-ahead market clearing mechanism at the distribution network level. Next, accounting for energy balance constraints and distribution network congestion constraints, this paper establishes a collaborative optimization model between SS-VPPs and active distribution networks. After obtaining the energy optimization results for all stakeholders, distribution locational marginal pricing (DLMP) is determined based on the dual problem solution to achieve multi-stakeholder market clearing. Finally, simulations using a modified IEEE 33-node test system demonstrate the rationality and feasibility of the proposed strategy. The framework fully exploits the market characteristics and dispatch potential of SS-VPPs, significantly reduces overall system operating costs, and ensures the economic benefits of all participants.

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Publication Details

Journal
Applied Sciences
Published
2025-10-19
DOI
https://doi.org/10.3390/app152011197
Primary Topic
Smart Grid Energy Management
Type
article
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article

Optimal Clearing Strategy for Day-Ahead Energy Markets in Distribution Networks with Multiple Virtual Power Plant Participation

Tianxiang Li, Zibo Wang, Wenlu Ji, Qian Xiao et al.
Applied Sciences
Smart Grid Energy Management
article

Optimal Clearing Strategy for Day-Ahead Energy Markets in Distribution Networks with Multiple Virtual Power Plant Participation

Tianxiang Li, Zibo Wang, Wenlu Ji, Qian Xiao, P.C. Wang, Hong Zhu, Qiao Ji, Sen Tian
article en

Abstract

Constrained by current market mechanisms, small-scale virtual power plants (SS-VPPs) on the distribution network side struggle to exert their market characteristics. To address this, this paper proposes a trading framework and operational strategy for distribution-side SS-VPPs to participate in the day-ahead energy market. First, an operation and trading framework for distribution networks involving SS-VPPs is proposed. This framework comprehensively considers the clearing process of the electricity energy market, the operation mechanism of the distribution network, and the cost structures of various stakeholders, while clarifying the day-ahead market clearing mechanism at the distribution network level. Next, accounting for energy balance constraints and distribution network congestion constraints, this paper establishes a collaborative optimization model between SS-VPPs and active distribution networks. After obtaining the energy optimization results for all stakeholders, distribution locational marginal pricing (DLMP) is determined based on the dual problem solution to achieve multi-stakeholder market clearing. Finally, simulations using a modified IEEE 33-node test system demonstrate the rationality and feasibility of the proposed strategy. The framework fully exploits the market characteristics and dispatch potential of SS-VPPs, significantly reduces overall system operating costs, and ensures the economic benefits of all participants.

Applied SciencesVol. 15(20)
North China Electric Power University (CN), Tianjin Research Institute of Electric Science (China) (CN), Shanghai Electric (China) (CN), State Grid Nanjing Power Supply Company (China), China Electric Power Research Institute
Openalex Percentile: Top 70%
Smart Grid Energy Management
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