A Review on Virtual Power Plants: Development Progress and Market Participation Mechanisms

Virtual power plants (VPPs) participate in the electricity market and interact with the power grid by aggregating user-side flexible resources, which plays an important role in improving the regulation capacity of new-type power systems (NTPS) and alleviating local power shortages. To better promote the development of VPPs and enhance the reliability of the NTPS, this review summarizes the development progress of typical VPPs at home and abroad and their participation mechanisms in electricity markets such as energy, frequency regulation, demand response, and reserve. Moreover, constructive suggestions are put forward for VPPs' development in participating in electricity markets at different market developing stages, providing references for the improvement of relevant policies, mechanisms, and business models.