Research on interaction between HEMS-VPP and power system with high renewable energy penetration under net zero emissions: Operation strategy and economy viability boundary

Yuxuan Zhou, Lichao Wang, Hongtao Fan, Yu Wang and Yaojie Sun

Applied Energy, 2025, vol. 390, issue C, No S0306261925005033

Abstract: With rapid development of net-zero emissions, the penetration rate of variable renewable energy (VRE) rises continuously that leads to instability of power system, which is suggested to be resolved by home energy management system - virtual power plant (HEMS-VPP). However, operation strategy and economy viability of HEMS-VPP are generally not accurate enough since significant impact of the interaction between HEMS-VPP and power system under changing external market caused by dynamic coupling among VRE penetration, electricity prices volatility and HEMS-VPP operation. In this paper, an operation strategy based on soft link between HEMS-VPP model and national power system & electricity market model is proposed to enhance economy viability of HEMS-VPP under impact of changing external market conditions derived from power system transition, whose boundary is further determined to get feasible investment market conditions. A multi-agent game model on Bid/Offer in balancing mechanism is established to simulate equilibrium operation of HEMS-VPP in competitive two-stage electricity markets. An aggregation model considering behavior uncertainty of residential users is presented to analyze economic incentive mode of HEMS-VPP. A HEMS cell model for fine-grained scenario is established to reveal inner operational characteristics of HEMS-VPP. The proposed method is evaluated by UK power system case. The results show that proposed operation strategy can achieve equilibrium in competitive two-stage electricity markets, which makes net present value of HEMS-VPP profitable by reducing annual electricity costs of 41 %. The economy viability boundary of HEMS-VPP aggregator and residential users are accurately determined, by which investment “sweet spot” is suggested.

Keywords: Virtual power plant; Home energy management system; Balancing mechanism; Multi-agent reinforcement learning; Interaction strategy; Economic boundary analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.apenergy.2025.125773

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