Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12–14, 2024, Ningbo, China

Research Article

Research on Bidding Strategies for Virtual Power Plants Based on Continuous Two-way Auctions

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  • @INPROCEEDINGS{10.4108/eai.12-1-2024.2347168,
        author={Yuyuan  Cao and Zhuopeng  Lin and Liyu  He},
        title={Research on Bidding Strategies for Virtual Power Plants Based on Continuous Two-way Auctions},
        proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12--14, 2024, Ningbo, China},
        publisher={EAI},
        proceedings_a={BDEDM},
        year={2024},
        month={6},
        keywords={electricity market; renewable energy consumption; virtual power plant},
        doi={10.4108/eai.12-1-2024.2347168}
    }
    
  • Yuyuan Cao
    Zhuopeng Lin
    Liyu He
    Year: 2024
    Research on Bidding Strategies for Virtual Power Plants Based on Continuous Two-way Auctions
    BDEDM
    EAI
    DOI: 10.4108/eai.12-1-2024.2347168
Yuyuan Cao1,*, Zhuopeng Lin1, Liyu He1
  • 1: Guangdong Power Grid Co., Ltd
*Contact email: 851515214@qq.com

Abstract

In response to the progressive depletion of fossil fuel resources and the exacerbation of climate change, the global development of renewable energy generation has accelerated. However, the extensive integration of renewable energies into the electrical grid presents significant challenges. These include not only a substantial impact on the traditional energy market's supply-demand equilibrium but also the introduction of unpredictable elements into the power market. This paper introduces a novel bidding strategy for virtual power plants, employing a continuous two-way auction mechanism. This strategy aims to leverage electricity pricing as a motivational tool for energizing both supply and demand stakeholders, thereby enhancing renewable energy consumption levels. The proposed method involves a detailed analysis of power market trading conditions, methodologies, and regulatory frameworks. This analysis facilitates the creation of a three-stage bidding function that aligns with the psychological profiles of both buyers and sellers. Additionally, the strategy encompasses user cost calculations and error mitigation strategies. Through a series of simulation tests, the efficiency of renewable energy consumption and the enhancement of social welfare in a sealed-bid auction context are compared and assessed.