A Joint Market Clearing and Pricing Method Considering the Resource Generation Characteristics of VPP

With the continuous advancement of national policy support and power market development, the optimization model and pricing methodology for virtual power plant (VPP) participating in the combined spot-auxiliary services market have become pressing issues. This paper designs an optimization model and pricing method for VPP units participating in the combined energy-reserve market. First, considering the regulatory characteristics of internal resources within a VPP, separate bidding models are developed for its generation-type and load-type units. Second, a two-level optimization model is constructed for VPP units participating in the combined market, upon which a market pricing method is designed. Finally, case studies validate that VPP participation in combined trading contributes positively to mitigating system peak-to-valley differences and stabilizing market electricity prices.