Evaluating the impacts of VPPs on the joint energy and ancillary service markets equilibrium

The co-operation of ESSs and renewables, working as a virtual power plant (VPP), is a practical and valid way to enhance the competitiveness of renewables in electricity market. To analyze the impacts of VPPs on the joint energy and ancillary service (AS) markets, a two-stage bi-level stochastic optimization model based on Nash-Cournot equilibrium is proposed in this paper. Then, the potential function and linearization method are applied to enhance the effectiveness of the solution process. At last, a numerical example is given to identify the impacts of VPPs on the energy prices, other participants' bidding strategies and renewables operation as well as profits.