Business model of virtual power plant considering uncertainty and different levels of market maturity

• Published in: Journal of cleaner production Vol. 362; p. 131433
• Main Authors: Tan, Caixia, Tan, Zhongfu, Wang, Guanran, Du, Yida, Pu, Lei, Zhang, Ronghao
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 15-08-2022
• Subjects: Business model; Market maturity; Robust optimization; Virtual power plants; Market maturity; Virtual power plants; Business model; Robust optimization
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2022.131433

In the context of carbon peaking and neutralization, virtual power plants (VPPs) that aggregate distributed resources have been developed on a large scale. VPPs are related to users, various energy service providers, and other subjects; however, currently there is a lack of business models to achieve win-win benefits for all subjects. This study first analyzes the design experience of foreign VPPs from three perspectives: marketing models, key market services, and future market mechanisms to attract customers, and summarizes the enlightenment for the design of VPPs in China. Secondly, the theory of the canvas model and its application in the VPP were studied. The business model of the VPP was designed from the initial, development, and mature stages. Finally, taking China's Sichuan, Shanghai, and Zhejiang provinces as examples, the example results showed that considering the resource aggregation cost and income of virtual power plant in two stages, the income of virtual power plant can be increased by 5.26%. The fluctuation range of deviation penalty cost considering the robustness of wind, photovoltaic, and electricity price was [6000,7000] less than [80009000] without considering the robustness. Moreover, compared with the unified business model, the differentiated business model has a faster decline in carbon dioxide emissions and coal consumption.
•Distinguishing market maturity and designing the business model of the VPP.•A two-stage model was used to design the operational strategy of the VPP.•Different uncertainty factors were considered in different market development stages.