Study on Market Clearing Mechanisms for Energy and Reserve Ancillary Services with VPPs

The high penetration of intermittent renewable generations and the low proportion of conventional units in power system lead to a situation that it is difficult to satisfy the growing reserve demand. Therefore, the reserve capacity of virtual power plants (VPPs) needs to be adequately explored. Focusing on different stages of market development and the degree of shortage of spare resources, three different clearing mechanisms of energy and reserves with VPPs were proposed and compared in this paper. They are energy and the reserves provided by units and VPPs are cleared in sequence, and energy and reserve from units are jointly cleared first, then the reserve from VPPs is cleared separately, and energy and the reserves provided by units and VPPs are cleared jointly. The influence of the participation of VPPs on the market clearing and their cost and profit are analyzed. Finally, the improved IEEE 30-node system is used for simulation verification, and the market economy, clearing price and incentive effect of different models on VPP are discussed.