Distributed energy resources (DERs) have been widely involved in the optimal dispatch of distribution systems which benefit from the characteristics of reliability, economy, flexibility, and environmental protection. And distribution systems are gradually transforming from passive networks to active distribution networks. However, it is difficult to manage DERs effectively because of their wide distribution, intermittency, and randomness. Virtual power plants (VPPs) can not only coordinate the contradiction between distribution systems and DERs but also consider the profits of DERs, which can realize the optimal dispatch of distribution systems effectively. In this paper, a bi-level dispatch model based on VPPs is proposed for load peak shaving and valley filling in distribution systems. The VPPs consist of distributed generations, energy storage devices, and demand response resources. The objective of the upper-level model is smoothing load curve, and the objective of the lower-level model is maximizing the profits of VPPs. Meanwhile, we consider the quadratic cost function to quantify the deviation between the actual output and the planned output of DGs. The effectiveness of the bi-level dispatch model in load shifting and valley filling is proved by various scenarios. In addition, the flexibility of the model in participating in distribution system dispatch is also verified.
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