A Techno-Economic Analysis Using DERs on Apartments as Virtual Power Plants Based on Cooperative Game Theory

This study presents a techno-economic analysis of deploying distributed energy resources (DERs), specifically photovoltaic (PV), battery energy storage systems (BESS) and electric vehicles (EVs), in apartment buildings configured as Virtual Power Plants (VPPs). Utiliz-ing cooperative game theory, the research models strategic collaboration between apart-ment residents (demand side) and utility operators (plant side) to maximize energy effi-ciency and economic returns. The VPP structure is analysed over a 15-year life cycle, in-corporating net present value (NPV), payback period (PBP), and government subsidy im-pacts. A cooperative game framework is applied using the Shapley value to ensure fair profit allocation based on each party’s contribution. Results indicate improved self-sufficiency, peak load reduction, and mutual financial benefits. Scenario analyses show that government subsidies to the plant side significantly increase the likelihood of successful cooperation, while declining DER costs enhance the VPP’s economic viability. The findings demonstrate that apartments configured as VPPs achieve strong economic viability (39% ROI, 10.5-year payback) and operational performance (70% self-sufficiency, 40% peak reduction) when grid arbitrage is enabled and moderate government subsidies (35% PV, 45% BESS) are provided. This research provides a replicable model for urban en-ergy planning and policy development, promoting sustainable energy transitions through shared DER infrastructure and cooperative stakeholder engagement.