Case Study on the Application of Game Theory in Virtual Power Plants in Shanghai

This paper is a case study about virtual power plants in Shanghai. In this paper, the background of forming virtual power plants in China was analyzed first. Next, it is about the current situation of Chinas electricity market. Afterward, game theory was applied to form a model between consumers and the plant owners. At last, the paper analyzed the reasons why virtual power plants in Shanghai still have quite a few problems in comparison with those in South Australia. Through the analysis of the different development statuses of virtual power plants in Shanghai and South Australia, it can be seen that the development of virtual power plants in China still has a long way to go, and great efforts need to be made in terms of technical support and exploration of customers. The meaning of this whole paper is that it could raise the awareness of society and the government to pay more attention to the development of virtual power plants in Shanghai. Hopefully, many other cities will soon start the construction of their local virtual power plants and thus contribute to saving electricity in the future.