Impacts of virtual power plant auctions on the Greek electricity market

Abstract

Over the last 15 years, Virtual Power Plant (VPP) products have created significant interest and have become a popular instrument of competition policy. In this paper we present a high-level design of VPP products and auctions and a brief review of the international experience. We consider the application of VPPs in the Greek electricity market, intended to facilitate the opening of the retail market. We simulate the day-ahead market for a yearly period and discuss the results. We are mainly interested in the change of the incumbent's bidding behaviour as a result of the retail market opening and its impact on the market outcome.