Core Insights - The virtual power plant aggregation model is a crucial flexibility resource in new power systems with a high proportion of renewable energy, addressing frequency stability issues through market-based balancing management mechanisms [1][3] Group 1: Market Mechanisms - Germany's balancing market includes three product categories: Frequency Control Reserve (FCR), Automatic Frequency Restoration Reserve (aFRR), and Manual Frequency Restoration Reserve (mFRR), each corresponding to different frequency control services [1] - The balancing market structure in Germany provides stable revenue and flexible response value, allowing virtual power plants to secure predictable fixed income while reducing market risks [2] - The inclusion of aFRR and mFRR products allows resources to participate without needing equal upward and downward adjustment capabilities, broadening the range of eligible resources [2] Group 2: Virtual Power Plant Operations - In China, virtual power plants primarily generate revenue through participation in the electricity spot market, demand response, and auxiliary service markets, with increasing demand for flexible adjustment resources [3] - The operational model of virtual power plants in Germany leverages digital and intelligent technologies to coordinate distributed resources for market participation, enhancing trading efficiency [4] - Recommendations include establishing clear entry mechanisms for virtual power plants in auxiliary service markets and developing performance testing standards to ensure fair participation [3][4] Group 3: Cross-Regional Coordination - Germany's balancing market participates in European cooperation projects, allowing cross-border procurement of balancing resources, which is essential for integrating high proportions of renewable energy [5] - Suggestions for China include breaking down inter-provincial barriers to allow surplus resources to participate in markets in resource-scarce areas, enhancing overall grid safety and economic efficiency [5] Group 4: Resource Aggregation and Flexibility - The common business model of German virtual power plants aggregates distributed renewable energy, flexible units, storage, and loads to create a larger scale for market participation [6] - In contrast, China's virtual power plant concept emphasizes load control, which limits resource expansion and introduces uncertainty in adjustment capabilities [6] - Recommendations include incorporating highly flexible new resources and exploring diverse system balancing products to enhance the effectiveness of resource integration and control [6]