Virtual power plant capacity tariff pricing method based on master–slave game

The large-scale construction of virtual power plants (VPPs) is a crucial method for alleviating the tight supply–demand balance during peak periods, necessitating capacity tariff incentives to encourage their development. Consequently, a VPP capacity tariff pricing method based on a master–slave gam...

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Main Authors: Shaobo Yin, Weiqing Sun, Haibing Wang
Format: Article
Language:English
Published: Elsevier 2025-08-01
Series:International Journal of Electrical Power & Energy Systems
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S0142061525003229
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author Shaobo Yin
Weiqing Sun
Haibing Wang
author_facet Shaobo Yin
Weiqing Sun
Haibing Wang
author_sort Shaobo Yin
collection DOAJ
description The large-scale construction of virtual power plants (VPPs) is a crucial method for alleviating the tight supply–demand balance during peak periods, necessitating capacity tariff incentives to encourage their development. Consequently, a VPP capacity tariff pricing method based on a master–slave game is proposed, considering the incentive effect of the capacity tariff on VPP construction. The grid is dominant within this framework, determining the capacity tariff based on construction capacity signals. VPP, as the follower, responds optimally to the leader’s pricing strategy to decide on construction capacity, with both parties influencing each other until equilibrium is reached. Based on this, the upper-level grid minimizes the operational cost of the power system by optimizing the values of capacity tariff and VPP output. The lower-level VPP aims for an annual return on investment (ROI) of 20%, thus determining the optimal construction capacity. Furthermore, the grey wolf optimization (GWO) algorithm is employed to solve the master–slave game problem. The proposed method’s effectiveness and rationality are verified through a real-world scenario of a regional grid. The results indicate that the master–slave game pricing method effectively simulates the interactive decision-making relationship between the grid and VPP sides, ensuring the rationality of VPP capacity tariff and construction capacity decisions, thereby providing valuable references for managers.
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publishDate 2025-08-01
publisher Elsevier
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spelling doaj-art-a7fc432e03fb4722b322afc3dbd443452025-08-20T02:07:56ZengElsevierInternational Journal of Electrical Power & Energy Systems0142-06152025-08-0116911077410.1016/j.ijepes.2025.110774Virtual power plant capacity tariff pricing method based on master–slave gameShaobo Yin0Weiqing Sun1Haibing Wang2School of Mechanical Engineering, University of Shanghai for Science and Technology, Shanghai 200093, ChinaCorresponding author.; School of Mechanical Engineering, University of Shanghai for Science and Technology, Shanghai 200093, ChinaSchool of Mechanical Engineering, University of Shanghai for Science and Technology, Shanghai 200093, ChinaThe large-scale construction of virtual power plants (VPPs) is a crucial method for alleviating the tight supply–demand balance during peak periods, necessitating capacity tariff incentives to encourage their development. Consequently, a VPP capacity tariff pricing method based on a master–slave game is proposed, considering the incentive effect of the capacity tariff on VPP construction. The grid is dominant within this framework, determining the capacity tariff based on construction capacity signals. VPP, as the follower, responds optimally to the leader’s pricing strategy to decide on construction capacity, with both parties influencing each other until equilibrium is reached. Based on this, the upper-level grid minimizes the operational cost of the power system by optimizing the values of capacity tariff and VPP output. The lower-level VPP aims for an annual return on investment (ROI) of 20%, thus determining the optimal construction capacity. Furthermore, the grey wolf optimization (GWO) algorithm is employed to solve the master–slave game problem. The proposed method’s effectiveness and rationality are verified through a real-world scenario of a regional grid. The results indicate that the master–slave game pricing method effectively simulates the interactive decision-making relationship between the grid and VPP sides, ensuring the rationality of VPP capacity tariff and construction capacity decisions, thereby providing valuable references for managers.http://www.sciencedirect.com/science/article/pii/S0142061525003229Virtual power plantCapacity tariffMaster-slave gamePeak-shaving demand responseGrey wolf optimization algorithm
spellingShingle Shaobo Yin
Weiqing Sun
Haibing Wang
Virtual power plant capacity tariff pricing method based on master–slave game
International Journal of Electrical Power & Energy Systems
Virtual power plant
Capacity tariff
Master-slave game
Peak-shaving demand response
Grey wolf optimization algorithm
title Virtual power plant capacity tariff pricing method based on master–slave game
title_full Virtual power plant capacity tariff pricing method based on master–slave game
title_fullStr Virtual power plant capacity tariff pricing method based on master–slave game
title_full_unstemmed Virtual power plant capacity tariff pricing method based on master–slave game
title_short Virtual power plant capacity tariff pricing method based on master–slave game
title_sort virtual power plant capacity tariff pricing method based on master slave game
topic Virtual power plant
Capacity tariff
Master-slave game
Peak-shaving demand response
Grey wolf optimization algorithm
url http://www.sciencedirect.com/science/article/pii/S0142061525003229
work_keys_str_mv AT shaoboyin virtualpowerplantcapacitytariffpricingmethodbasedonmasterslavegame
AT weiqingsun virtualpowerplantcapacitytariffpricingmethodbasedonmasterslavegame
AT haibingwang virtualpowerplantcapacitytariffpricingmethodbasedonmasterslavegame