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Aggregation Model and Market Mechanism for Virtual Power Plant Participation in Inertia and Primary Frequency Response

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  • Changsen Feng
  • Zhongliang Huang
  • Jun Lin
  • Licheng Wang
  • Youbing Zhang
  • Fushuan Wen

Abstract

The declining inertia provision from synchronous generators in modern power systems necessitates aggregating distributed ener-gy resources (DERs) into virtual power plants (VPPs) to unlock their potential in delivering inertia and primary frequency re-sponse (IPFR) through ancillary service markets. To facilitate DER participation in the IPFR market, this paper proposes a DER aggregation model and market mechanism for VPP partici-pating in IPFR. First, an energy-IPFR market framework is de-veloped, in which a VPP acts as an intermediary to coordinate heterogeneous DERs. Second, by taking into account the delay associated with inertia, an optimization-based VPP aggregation method is introduced to encapsulate the IPFR process involving a variety of DERs. Third, an energy-IPFR market mechanism with VPP participation is introduced, aiming to minimize social costs while considering the frequency response delay characteristics of the participants. Finally, the performance of the proposed ap-proaches is verified by case studies on a modified IEEE 30-bus system.

Suggested Citation

  • Changsen Feng & Zhongliang Huang & Jun Lin & Licheng Wang & Youbing Zhang & Fushuan Wen, 2025. "Aggregation Model and Market Mechanism for Virtual Power Plant Participation in Inertia and Primary Frequency Response," Papers 2503.04854, arXiv.org.
    • Handle: RePEc:arx:papers:2503.04854
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    References listed on IDEAS

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    1. Li, Kun & Wei, Lishen & Fang, Jiakun & Ai, Xiaomeng & Cui, Shichang & Zhu, Mengshu & Wen, Jinyu, 2024. "Incentive-compatible primary frequency response ancillary service market mechanism for incorporating diverse frequency support resources," Energy, Elsevier, vol. 306(C).
    2. Qiu, Dawei & Baig, Aimon Mirza & Wang, Yi & Wang, Lingling & Jiang, Chuanwen & Strbac, Goran, 2024. "Market design for ancillary service provisions of inertia and frequency response via virtual power plants: A non-convex bi-level optimisation approach," Applied Energy, Elsevier, vol. 361(C).
    3. Zheng Shi & Haixiao Zhu & Haibo Zhao & Peng Wang & Yan Liang & Kaikai Wang & Jie Chen & Xiaoming Zheng & Hongli Liu, 2024. "Parameter Estimation Method for Virtual Power Plant Frequency Response Model Based on SLP," Energies, MDPI, vol. 17(13), pages 1-15, June.
    4. Mitra, Sumit & Sun, Lige & Grossmann, Ignacio E., 2013. "Optimal scheduling of industrial combined heat and power plants under time-sensitive electricity prices," Energy, Elsevier, vol. 54(C), pages 194-211.
    5. Gao, Hongchao & Jin, Tai & Feng, Cheng & Li, Chuyi & Chen, Qixin & Kang, Chongqing, 2024. "Review of virtual power plant operations: Resource coordination and multidimensional interaction," Applied Energy, Elsevier, vol. 357(C).
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