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Unpublished Paper
Virtual Power Plant Auctions
Working Paper, University of Maryland (2009)
  • Peter Cramton, University of Maryland
  • Lawrence M Ausubel, University of Maryland

Since their advent in 2001, virtual power plant (VPP) auctions have been widely implemented. In this paper, we describe the various design choices that virtually all VPP auctions have had in common and also discuss a few aspects of the auction design that have varied significantly among the VPP auctions to date. We then consider whether VPP auctions have been an effective tool for promoting the objectives of regulators. We find that VPP auctions are effective devices for facilitating new entry into electricity markets and for developing wholesale markets, while they are not particularly well suited to making large reductions in market power in the spot market.

  • virtual power plant auctions,
  • energy auctions
Publication Date
September, 2009
Citation Information
Peter Cramton and Lawrence M Ausubel. "Virtual Power Plant Auctions" Working Paper, University of Maryland (2009)
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