Aggregation Model and Market Mechanism for Virtual Power Plant Participation in Inertia and Primary Frequency Response

Abstract: The declining inertia provision from synchronous generators in modern power systems necessitates aggregating distributed ener-gy resources (DERs) into virtual power plants (VPPs) to unlock their potential in delivering inertia and primary frequency re-sponse (IPFR) through ancillary service markets. To facilitate DER participation in the IPFR market, this paper proposes a DER aggregation model and market mechanism for VPP partici-pating in IPFR. First, an energy-IPFR market framework is de-veloped, in which a VPP acts as an intermediary to coordinate heterogeneous DERs. Second, by taking into account the delay associated with inertia, an optimization-based VPP aggregation method is introduced to encapsulate the IPFR process involving a variety of DERs. Third, an energy-IPFR market mechanism with VPP participation is introduced, aiming to minimize social costs while considering the frequency response delay characteristics of the participants. Finally, the performance of the proposed ap-proaches is verified by case studies on a modified IEEE 30-bus system.