Bilateral Market Mechanism and Clearing Model of the Valley Regulation Ancillary Service Considering Virtual Power Plants

The integration of high proportion renewable energy requires more the valley regulation(VR) capacity. In the context of the relative shortage of the VR capacity provided by the thermal power units, it is urgent for the load-side flexible resources to participate in the VR. In this paper, a bilateral market trading mechanism of the valley regulation ancillary service(VRAS) is proposed, which the renewable generators participate in the bidding as buyers, virtual power plant(VPP) and thermal power unit as sellers. Meanwhile the market transaction process and clearing principles are given. Considering the power transferability characteristics of the VPPs, the thermal power units reduce power output for VPPs during non-valley regulation(NVR) periods. A security constrained market clearing model with the goal of maximizing the comprehensive market benefits is established. The profits of the market members are analyzed. The validity of the proposed market mechanism and clearing model is shown by calculating the improved IEEE30 bus system case.