INTEGRATION OF VIRTUAL POWER NETWORKS INTO MODERN ELECTRICITY MARKETS: OPPORTUNITIES AND CHALLENGES

Abstract

The rapid evolution of digitalization, the accelerated penetration of renewable energy, and the proliferation of distributed energy resources (DERs) are driving profound transformations in traditional electricity markets. Virtual Power Networks (VPNs) are aggregations of distributed generation, energy storage and controllable loads that can participate in electricity markets as a single entity. This paper systematically analyzes the basic architecture of VPNs, modes of market participation and the potential for improving market efficiency, providing ancillary services and enhancing grid stability. The paper also discusses the key challenges in technology implementation, regulatory frameworks, market design and cybersecurity, providing insights into future theoretical research and practical deployment.

References

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