Review and Prospects of Artificial Intelligence Technology in Virtual Power Plants
Abstract
1. Introduction
2. Basic Concepts and System Architecture of VPP
- (1)
- The Infrastructure Layer: As the physical and information infrastructure of the VPP, this layer integrates the functions of the “physical layer” and “communication layer” in traditional energy systems. Through data collection systems, communication networks, and security assurance mechanisms, it ensures the real-time monitoring of distributed resources as well as the secure transmission and storage of data.
- (2)
- The Sensing and Analytics Layer: This layer is in the middle of data and decision-making, corresponding to the “information layer” of the traditional energy system framework, and is responsible for transforming massive raw data into knowledge with decision-making value. Through multi-source data fusion, feature extraction, dynamic modeling, and other technical means, the accurate perception and characterization of distributed resource state are achieved, providing data support and analysis basis for upper-level decision-making.
- (3)
- The Decision–Execution Layer: As the “brain” and “central nerve” of the VPP, this layer corresponds to the “functional layer” of the traditional framework, and its core function is to generate optimal resource scheduling strategies and issue control instructions based on the data analysis results of the sensing layer. In this process, it needs to balance economic efficiency and system safety, realize dynamic optimization decision-making under multi-objectives, and ensure the accurate execution of control instructions.
- (4)
- The Market Participation Layer: As the interface between the VPP and the external economic environment, this layer corresponds to the “business layer” in the traditional framework and is responsible for formulating market trading strategies and participating in the diversified markets of electricity spot, auxiliary services, and capacity. Through the analysis of market signals and the optimization of trading strategies, this layer transforms the VPP’s technical capabilities into economic value, maximizes operational returns, and provides flexible grid support services.
3. Application of AI Technology in the VPP
3.1. Resource Analysis
3.2. Power Forecasting
- (1)
- Load forecasting serves as the foundation for VPP operation. Accurate load forecasting helps the dispatch system prepare in advance, avoiding grid overload or resource waste.
- (2)
- The power output of renewable energy sources such as PV and wind power has high volatility and uncertainty, which brings challenges to grid scheduling. Accurate power generation prediction can effectively improve renewable energy consumption capacity and reduce dependence on traditional power generation resources.
- (3)
- Energy storage systems and adjustable loads in the VPP play an important role in regulating grid loads and providing auxiliary services. Accurate prediction of the charging and discharging capacity of energy storage systems and the responsiveness of adjustable loads enable the dispatch system to manage the grid more flexibly and improve overall system stability.
3.3. Resource Aggregation
3.4. Optimal Scheduling
3.5. Market Trading Strategy Decisions
- (1)
- lDL [71] is a branch of machine learning, which is mainly based on the multi-layer architecture of neural networks, and deals with and learns complex data patterns through multi-level feature abstraction. It can be used for market tariff prediction, through learning historical data, weather factors, supply and demand changes, etc., to predict future market prices, to provide accurate data support for the VPP trading strategy, mainly using LSTM, the CNN, the transformer, and other models to capture the time series trend.
- (2)
- RL can be used in market trading strategy decision-making for the optimization of the dynamic tariff response strategy, and the cross-market bidding strategy RL can be used for dynamic tariff response strategy optimization and cross-market bidding strategy formulation in market trading strategy decision-making, mainly using Markov decision process modeling (MDP) and the deep deterministic strategy gradient (DDPG).
3.6. Data Security
3.7. Comprehensive Comparison of Functional Modules
4. Future Challenges and Outlook
4.1. Challenges Faced
- (1)
- Current VPP research mainly focuses on the optimization of a single functional module and lacks systematic research on the synergistic operation between modules. Resource aggregation models and optimal scheduling algorithms are often designed independently of each other, resulting in aggregated resource characteristics that cannot be fully utilized by scheduling algorithms. The adaptability and migration ability of AI technology under different power market environments need to be improved. With the expansion of VPP scale, flexible access to massive heterogeneous resources and collaborative interaction among VPPs require more scalable AI solutions. Various AI models have inherent tradeoffs in terms of accuracy, computational efficiency, interpretability, and data requirements, and a more systematic research approach is needed to select the right combination of AI technologies based on the characteristics of different functional modules of the VPP.
- (2)
- VPPs face multiple sources of uncertainty, including fluctuations in renewable energy output, changes in user behavior, and changes in market conditions. Existing AI algorithms are not robust enough in highly uncertain environments. Especially in multi-timescale operation, short-term optimization may conflict with long-term planning, and the decision-making mechanism for balancing short-term gains and long-term sustainability is in urgent need of a breakthrough. As a support for the safe operation of the power system, the AI system of the VPP must meet the requirements for high reliability of the power system, including the ability to provide security under fault conditions.
- (3)
- The “black box” nature of AI technology raises issues of transparency and interpretability, and the VPP involves multiple stakeholders with high demands for understandability and fairness in AI decision-making. It is critical to develop hybrid models that can both leverage AI optimization capabilities and provide explanations for decisions. AI-driven VPPs will change the competitive landscape and value distribution mechanisms of traditional electricity markets, and these socio-economic impacts have not been fully studied. Inadequate regulatory policies and legal frameworks also constrain the actual deployment and commercialization of VPPs.
4.2. Future Prospects
- (1)
- In the future, the VPP can build a multi-layered hybrid intelligence architecture covering sensing, analyzing, decision-making, and execution. It will fuse physical models with data-driven methods to improve modeling accuracy and develop a hierarchical decision-making framework with both real-time response and global optimization. The computing architecture of edge intelligence and cloud collaboration will deploy lightweight algorithms at the edge to handle time-sensitive tasks and perform complex global optimization in the cloud to effectively respond to the computational challenges of resource scale expansion, and ensure the stable performance of the system at various scales through an elastic computing resource allocation mechanism.
- (2)
- Future VPP decision-making will shift from purely economic optimization to integrated consideration of economic, environmental, and social sustainability. The combination of deep reinforcement learning and system dynamics can achieve a balance between short-term gains and long-term sustainability. The future VPP will require introducing the theory of cooperative games and mechanism design, and constructing an operation model that promotes the voluntary participation of all parties and the equitable distribution of benefits.
- (3)
- VPPs should build a unified data exchange and model-sharing platform to promote knowledge migration and experience sharing among VPPs. The industry should formulate AI model evaluation and certification standards to establish an industry trust foundation. Organizations should form a data-sharing mechanism based on value contribution and clarify data property rights and value assessment methods. All stakeholders should strengthen interdisciplinary research and industry–university–research cooperation, integrate knowledge in multiple fields such as power systems, computer science, economics, etc., cultivate composite talents, and jointly promote the intelligent development of VPPs.
5. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
Abbreviations
VPP | Virtual Power Plant |
AI | Artificial Intelligence |
MT | Machine Learning |
DL | Deep Learning |
NIP | Natural Language Processing |
DRL | Deep Reinforcement Learning |
DER | Distributed Energy Resource |
ICT | Information and Communication Technology |
PV | Photovoltaic |
WP | Wind Power |
EV | Electric Vehicle |
FL | Federated Learning |
GAN | Generative Adversarial Network |
LSTM | Long Short-Term Memory |
CNN | Convolutional Neural Network |
SVM | Support Vector Machines |
MAS | Multi-agent Systems |
RL | Reinforcement Learning |
MDP | Markov Decision Process |
DDPG | Deep Deterministic Strategy Gradient |
MDP | Markov Decision Process |
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VPP Functional Modules | Use of AI Technology | Corresponds | Existing Deficiencies |
---|---|---|---|
resource analysis | FL; GAN; Big Data analytics technology | Accurately identify and classify the characteristics of various types of energy resources in a virtual power plant to provide data support for subsequent aggregation and optimization. | Imperfect real-time analysis and model fusion for cross-regional heterogeneous data; challenges in privacy protection and distributed data management. |
power forecasting | LSTM; CNN; SVM | Improve the accuracy of load fluctuation and resource output forecasting for the grid and reduce dispatch risk. | Insufficient algorithm efficiency and robustness under extreme weather conditions; lack of systematic validation in large-scale power grids. |
data security | FL; blockchain technology; DL and pattern recognition technologies | Improve data tampering and traceability and reduce the risk of centralized data breaches. | Insufficient characterization of heterogeneous resource differences; scalability in large-scale distributed scenarios requires further research. |
resource aggregation | clustering algorithms (e.g., K-means, hierarchical clustering); MAS; genetic algorithms and particle swarm optimization | Improve resource utilization, reduce scheduling complexity, improve the response speed of power supply and demand balance, and optimize resource allocation. | Algorithm convergence speed and robustness remain challenges; lack of safety and stability assessment under extreme conditions. |
optimal scheduling | RL; MAS; DRL | Achieve coordinated scheduling of multiple resources to ensure stable operation of the power system and maximize economic benefits. | Facing complex environments with changing market rules and information asymmetry; need for improved mechanism design and practical validation. |
market trading strategy decisions | DL; RL | Improve the profitability and competitiveness of virtual power plants in many types of markets. | Insufficient integration between blockchain and traditional scheduling mechanisms; technical integration and efficiency balance still face challenges. |
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Liu, X.; Gao, C. Review and Prospects of Artificial Intelligence Technology in Virtual Power Plants. Energies 2025, 18, 3325. https://doi.org/10.3390/en18133325
Liu X, Gao C. Review and Prospects of Artificial Intelligence Technology in Virtual Power Plants. Energies. 2025; 18(13):3325. https://doi.org/10.3390/en18133325
Chicago/Turabian StyleLiu, Xinxing, and Ciwei Gao. 2025. "Review and Prospects of Artificial Intelligence Technology in Virtual Power Plants" Energies 18, no. 13: 3325. https://doi.org/10.3390/en18133325
APA StyleLiu, X., & Gao, C. (2025). Review and Prospects of Artificial Intelligence Technology in Virtual Power Plants. Energies, 18(13), 3325. https://doi.org/10.3390/en18133325