Proceedings of the 4th International Conference on Informatization Economic Development and Management, IEDM 2024, February 23–25, 2024, Kuala Lumpur, Malaysia

Research Article

Virtual Power Plants (VPPs): Market Mechanisms and Applications in China

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  • @INPROCEEDINGS{10.4108/eai.23-2-2024.2345882,
        author={Wenzhen  Zhang and Zekang  Lin and Yu  Tang and Yonghong  Li and Mengdi  Zeng},
        title={Virtual Power Plants (VPPs): Market Mechanisms and Applications in China},
        proceedings={Proceedings of the 4th International Conference on Informatization Economic Development and Management, IEDM 2024, February 23--25, 2024, Kuala Lumpur, Malaysia},
        publisher={EAI},
        proceedings_a={IEDM},
        year={2024},
        month={5},
        keywords={virtual power plant; demand response; peak regulation ancillary service market; frequency regulation ancillary service market},
        doi={10.4108/eai.23-2-2024.2345882}
    }
    
  • Wenzhen Zhang
    Zekang Lin
    Yu Tang
    Yonghong Li
    Mengdi Zeng
    Year: 2024
    Virtual Power Plants (VPPs): Market Mechanisms and Applications in China
    IEDM
    EAI
    DOI: 10.4108/eai.23-2-2024.2345882
Wenzhen Zhang1,*, Zekang Lin1, Yu Tang1, Yonghong Li1, Mengdi Zeng1
  • 1: China Southern Power Grid Technology Co., Ltd.
*Contact email: wenzhen@bupt.cn

Abstract

Growing penetration rate of renewable energy in China’s electricity system results in the decrease of grid flexibility. And virtual power plant (VPP) as a promising solution is drawing growing attention. However, as VPP is in the early development stage in China, the mechanisms that VPPs can apply are yet limited. This paper reviews the current market mechanisms for VPP to participate in China, and investigates several application cases with different proceeding emphasis, and concludes that ancillary service market is a more effective way to promote VPP development at current stage.