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The declining provision of inertia by synchronous generators in modern power systems necessitates aggregating distributed energy resources (DERs) into virtual power plants (VPPs) to unlock their potential in delivering inertia and primary…

General Economics · Economics 2026-01-27 Changsen Feng , Zhongliang Huang , Jun Lin , Licheng Wang , Youbing Zhang , Fushuan Wen

The integration of distributed energy resources (DERs) into wholesale energy markets can greatly enhance grid flexibility, improve market efficiency, and contribute to a more sustainable energy future. As DERs -- such as solar PV panels and…

Systems and Control · Electrical Eng. & Systems 2025-07-08 Jun He , Andrew L. Liu

As the penetration of distributed energy resources (DERs) increases, harnessing their flexibility becomes critical for power system operations. Virtual power plants (VPPs) offer a promising solution. However, most existing scheduling tools…

Systems and Control · Electrical Eng. & Systems 2026-04-30 Lorenzo Zapparoli , Paul Fäth , Blazhe Gjorgiev , Giovanni Sansavini

A virtual power plant (VPP) is operated by an aggregator that acts as a market intermediary, aggregating consumers to participate in wholesale power markets. By setting incentive prices, the aggregator induces consumers to sell energy and…

Computer Science and Game Theory · Computer Science 2026-04-07 Liudong Chen , Hyemi Kim , Adam N. Elmachtoub , Bolun Xu

Local electricity markets offer a promising solution for integrating renewable energy sources and other distributed energy resources (DERs) into distribution networks. These markets enable the effective utilization of flexible resources by…

Systems and Control · Electrical Eng. & Systems 2025-06-04 Niloofar Pourghaderi , Milad Kabirifar , Payman Dehghanian

The integration of distributed energy resources (DERs) into wholesale electricity markets, as mandated by FERC Order 2222, imposes new challenges on system operations. To remain consistent with existing market structures, regional…

Systems and Control · Electrical Eng. & Systems 2026-04-13 Zhentong Shao , Jingtao Qin , Xianbang Chen , Nanpeng Yu

Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy resources (DERs) propels a shift from passive to active distribution network (ADN)…

Systems and Control · Electrical Eng. & Systems 2023-11-21 Xiaofei Wang , Fangxing Li , Linquan Bai , Xin Fang

A virtual power plant (VPP) facilitates the integration of distributed energy resources (DERs) for the transmission-level operation. A challenge in operating a VPP is to characterize the cost function over its feasible power transfer region…

Systems and Control · Electrical Eng. & Systems 2021-12-03 Wei Lin , Changhong Zhao

In this work, we present a detailed model of a Renewable Energy Source (RES)-based Virtual Power Plant (VPP) that participates in Day-Ahead Market (DAM) and Intra-Day Market (IDM) with dispatchable and non-dispatchable RESs and flexible…

Systems and Control · Electrical Eng. & Systems 2021-12-07 Oluwaseun Oladimeji , Alvaro Ortega , Lukas Sigrist , Luis Rouco , Pedro Sanchez-Martin , Enrique Lobato

The growing integration of distributed energy resources (DERs) into the power grid necessitates an effective coordination strategy to maximize their benefits. Acting as an aggregator of DERs, a virtual power plant (VPP) facilitates this…

Information Theory · Computer Science 2024-06-04 Pratik Harsh , Hongjian Sun , Debapriya Das , Goyal Awagan , Jing Jiang

Peer-to-peer (P2P) energy trading is becoming central to modern distribution systems as rooftop PV and home energy management systems become pervasive, yet most existing market and reinforcement learning designs emphasize efficiency or…

Systems and Control · Electrical Eng. & Systems 2025-08-27 Shrenik Jadhav , Birva Sevak , Srijita Das , Akhtar Hussain , Wencong Su , Van-Hai Bui

To manage huge amount of flexible distributed energy resources (DERs) in the distribution networks, the virtual power plant (VPP) is introduced in industry. The VPP can optimally dispatch these resources in a cluster way and provide…

Systems and Control · Electrical Eng. & Systems 2020-11-03 Siyuan Wang , Wenchuan Wu

The rapid deployment of distributed energy resources (DERs) is one of the essential efforts to mitigate global climate change. However, a vast number of small-scale DERs are difficult to manage individually, motivating the introduction of…

Systems and Control · Electrical Eng. & Systems 2026-03-26 Tao Tan , Rui Xie , Meng Yang , Yue Chen

We focus on the aggregation of distributed energy resources (DERs) through a profit-maximizing intermediary that enables participation of DERs in wholesale electricity markets. Particularly, we study the market efficiency brought in by the…

Optimization and Control · Mathematics 2020-04-21 Khaled Alshehri , Mariola Ndrio , Subhonmesh Bose , Tamer Başar

We consider large scale cost allocation problems and consensus seeking problems for multiple agents, in which agents are suggested to collaborate in a distributed algorithm to find a solution. If agents are strategic to minimize their own…

Optimization and Control · Mathematics 2013-04-11 Takashi Tanaka , Farhad Farokhi , Cédric Langbort

Although the specific structures of electricity markets are diverse around the world, they were all conceived on the premise of predictable, controllable generation with nonnegligible marginal costs. Recent changes, specifically, the…

Computer Science and Game Theory · Computer Science 2020-12-10 Orcun Karaca

In this paper, a framework is proposed to coordinate the operation of the independent system operator (ISO) and distribution system operator (DSO). The framework is compatible with current practice of the U.S. wholesale market to enable…

Systems and Control · Electrical Eng. & Systems 2023-06-16 Mohammad Mousavi , Meng Wu

The rapid expansion of distributed energy resources (DERs) is one of the most significant changes to electricity systems around the world. Examples of DERs include solar panels, small natural gas-fueled generators, combined heat and power…

Optimization and Control · Mathematics 2021-03-29 Zuguang Gao , Khaled Alshehri , John R. Birge

Ambitious renewable portfolio standards motivate the incorporation of energy storage resources (ESR) as sources of flexibility. While the United States government aims to promote ESR participation in electricity markets, work on market…

Systems and Control · Electrical Eng. & Systems 2022-06-07 Weiqi Zhang , Philip A. Tominac , Victor M. Zavala

Introduction of market mechanisms in distribution systems is currently subject to extensive studies. One of the challenges facing Distribution Market Operators (DMOs) is to implement a fair and economically efficient pricing mechanism that…

Systems and Control · Computer Science 2017-02-24 Sina Parhizi , Alireza Majzoobi , Amin Khodaei
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