With the continuous advancement of China's carbon neutrality goal and the acceleration of energy transformation

the importance of electric power market is increasing

which puts forward new challenges and opportunities for virtual power plant (VPP) to participate in the electric power market.Aiming at the problem of how to optimize the bidding strategy of VPP in energy-frequency regulation (FM) market to maximize the benefits

this paper presents a research method of the optimal bidding strategy of VPP in energy-FM market.Firstly

the paper introduces and analyzes the current electricity market mechanism.Secondly

based on Stackelberg game theory

a bi-level decision model of VPP participating in the power market and FM auxiliary service market is constructed.The upper layer model aims to maximize the expected revenue of VPP

while the lower layer model aims to minimize the system clearing cost.Then

the two-layer model is simplified to a mixed integer linear programming problem by using KKT conditions.Finally

the rationality and validity of the proposed transaction decision model are verified by an example analysis.The example shows that VPP can get more profits in the market through strategic quotation.