Construction Necessity and Benefit Assessment of Virtual Power Plant: The Hubei Province Case

The lack of research on provincial construction necessary of virtual power plants (VPPs) and corresponding benefit assessment has made it difficult for governmental departments to accurately predict and assess the benefits of VPPs in the whole electricity market. Policy diversity of VPPs exists in different provinces in China. The critical thinking of VPPs in different provinces shows that most VPPs are allowed to participate in the auxiliary service market. Hence the benefit of VPPs participation in peak-shaving market is analyzed based on the field data in Hubei province, as well as the benefit of VPPs participation in valley filling market. The results show that the total benefit of VPPs participation in the peak regulation market will be about 35 million yuan in Hubei province in 2023 year, and the total benefit reaches 105 million yuan in 2025 year. The significant economic efficiency proves the construction necessity of VPPs in Hubei province, and then the key measurements taken in Hubei province is also introduced in this paper to provide reference for VPPs construction in other provinces in the next few years.