Review on power generation and bidding optimization of virtual power plant

As an important class of structure in future power system, virtual power plant (VPP) integrates diversified distributed energy resources (DER). Through the optimal dispatch, on one hand, VPP optimizes its internal resources and on the other hand, it participates in the operation and trade of power system as a whole. This paper makes a comprehensive review on optimal dispatch of VPP starting with the concept and composition of VPP and the operation modes are studied and concluded. Then the bi-level structure and main modes of optimal dispatch of VPP are analyzed and the optimal bidding strategy of VPP is explored. The general expressions of optimization models for VPP participating in the operation and trade of electricity markets are given respectively by summarizing operating costs of VPP. Finally, some directions are given for further studies of VPP.