In addition, the flexibility of the model in participating in distribution system dispatch is also verified. The effectiveness of the bi-level dispatch model in load shifting and valley filling is proved by various scenarios. Meanwhile, we consider the quadratic cost function to quantify the deviation between the actual output and the planned output of DGs. 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. The VPPs consist of distributed generations, energy storage devices, and demand response resources. In this paper, a bi-level dispatch model based on VPPs is proposed for load peak shaving and valley filling in distribution systems. 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. However, it is difficult to manage DERs effectively because of their wide distribution, intermittency, and randomness. And distribution systems are gradually transforming from passive networks to active distribution networks. 4China Electric Power Research Institute, Beijing, Chinaĭistributed 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.3School of Electrical Engineering and Automation, Wuhan University, Wuhan, China.2Economic and Technology Research Institute, State Grid Tianjin Electric Power Company, Tianjin, China.1Key Laboratory of Smart Grid of Ministry of Education, Tianjin University, Tianjin, China.Fengzhang Luo 1, Xin Yang 1, Wei Wei 1*, Tianyu Zhang 2, Liangzhong Yao 3, Lingzhi Zhu 4 and Minhui Qian 4
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