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Virtual power plant and system integration of distributed energy resources
IET Renewable Power Generation
Abstract
A concept is presented along with the overarching structure of the virtual power plant (VPP), the primary vehicle for delivering cost efficient integration of distributed energy resources (DER) into the existing power systems. The growing pressure, primarily driven by environmental concerns, for generating more electricity from renewables and improving energy efficiency have promoted the application of DER into electricity systems. So far, DER have been used to displace energy from conventional generating plants but not to displace their capacity as they are not visible to system operators. If this continues, this will lead to problematic over-capacity issues and under-utilisation of the assets, reduce overall system efficiency and eventually increase the electricity cost that needs to be paid by society. The concept of VPP was developed to enhance the visibility and control of DER to system operators and other market actors by providing an appropriate interface between these system components. The technical and commercial functionality facilitated through the VPP are described and concludes with case studies demonstrating the benefit of aggregation (VPP concept) and the use of the optimal power flow algorithm to characterise VPP
... The increase in distributed energy resources (DERs) requires actively integrating them in the energy system [41]. Such DERs are typically small-scale (3-10,000 kW [50]) and include resources like solar panels, wind turbines, and energy storage systems. ...
... Such DERs are typically small-scale (3-10,000 kW [50]) and include resources like solar panels, wind turbines, and energy storage systems. A VPP represents a set of DER units to allow them to actively participate in electricity markets while facilitating efficient network operation [41]. VPPs present a wide variety of benefits to operators of DER units, network operators, policymakers, and aggregators [46]. ...
... One rapidly advancing type of DER is the EV. As noted by Pudjianto et al. [41], DERs are not just generators but also controllable loads. Via smart charging, the charging time and power of EVs can be scheduled in a coordinated way [7] as a form of demand-side management [16]. ...
With the rise of inverter-based renewables, grid stability is increasingly strained. Electric vehicles (EVs) offer unique potential in enhancing this stability through intelligent (dis-)charging control; by aggregation, they can provide significant balancing services to network operators. To exploit this opportunity, airport parking is particularly well suited due to the large number of vehicles with predictable departure times. By using the novel Automated Valet Charging (AVC) technology, parking facilities can optimally schedule EVs—autonomously maneuvering cars to and from charge points and connecting them robotically. We propose using AVC-capable parking facilities as virtual power plants (VPPs), providing fast-acting frequency containment reserve (FCR). This study’s key contributions are: 1) presenting the AVC VPP concept and formalizing its two core optimization tasks, 2) developing a modular co-simulation architecture for comprehensive evaluation, 3) performing preliminary experiments, to assess feasibility and to identify simulation challenges, and 4) outlining strategic recommendations for practical AVC VPP implementation. The results suggest the concept’s potential in utilizing airport EV parking for FCR, promising additional revenue for parking operators without sacrificing customer satisfaction. However, for conclusive assessment, extended simulation models are necessary. Furthermore, prequalification emerges as a significant obstacle to profitable real-world applications. Ultimately, AVC VPPs may help with transforming EVs from being a burden on the grid to a valuable asset.
... the surplus or lack of power due to the uncertainty in RES can be eliminated. Depending on whether the technical constraints of the network connecting internal sources are considered, a VPP can be a commercial VPP (CVPP) or a technical VPP (TVPP) [8]. So far, the VPP model has been developed in several countries, such as Australia, Germany, and Canada, and the potential of this model can be shown in [9][10][11][12]. ...
... From the system operator's viewpoint, these RESs and consumers can be treated as a unified market agent acting as a supplier or a consumer (named "prosumer") depending on the difference between RES' available power output and actual local demand each hour. A significant advantage of this model is the ability to manage and control many resources without being limited by geographical location [5][6][7][8]. In addition, VPP can integrate flexible load and energy storage systems (ESS) and coordinate them with the operation of RES; as a result, increasing charging power. ...
... With bigM as a sufficiently large constant, Equations (3) and (4) ensure that at any time, the ESS can only provide one type of reserve energy: upward or downward, corresponding to the CVPP's reserve energy trading. limitations of these upward reserve portions are represented by Equations (5)- (8). In detail, we have the following: ...
In recent years, with the rapid increase in renewable energy sources (RESs), a Virtual Power Plant (VPP) concept has been developed to integrate many small-scale RESs, energy storage systems (ESSs), and customers into a unified agent in the electricity market. Optimal coordination among resources within the VPP will overcome their disadvantages and enable them to participate in both energy and balancing markets. This study considers a VPP as an active agent in reserve provision with an upward reserve capacity contract pre-signed in the balancing capacity (BC) market. Based on the BC contract’s requirements and the forecasted data of RESs and demand, a two-stage stochastic optimization model is presented to determine the VPP’s optimal scheduling in the day-ahead (DA) and balancing energy (BE) markets. The probability of reserve activation in the BE market is considered in this model. The ESS’s reserve provision model is proposed so as not to affect its schedule in the DA market. The proposed optimal scheduling model is applied to a test VPP system; then, the effects of the BC contract and the probability of reserve activation on the VPP’s trading schedule are analyzed. The results show that the proposed model has practical significance.
... Additionally, uncertainties are modelled by adopting the stochastic planning. Power sources, storage devices, and responsive loads are better to be integrated as a VPP so that energy can be appropriately managed [12]. VPPs planning and operation are discussed in [13], where the best location of VPPs is found. ...
... Formulation of the IBVPP operation is given based on Equations (12)- (21). The operating model of the VPP include the power balance (12), DRP formulation (13), (14), and EVs model (15)- (18). The operation model of the inverter follows constraints (19)- (21). ...
... The operation model of the inverter follows constraints (19)- (21). According to Equation (12), it is observed that the VPP is capable of operation in both generation and consumption modes. When in the generation mode, the active power of inverter or IBVPP (P + IBVPP ) can be managed. ...
Virtual power plants (VPP) with resources and storages are able to control the active power of the network. They are also connected to the network through an inverter, which is capable of controlling reactive power. Therefore, it is expected that the optimal use of inverter‐based VPP can play an effective role in improving the economic and technical status of the distribution network. So, the operation of a smart distribution system is presented in this paper by considering inverter‐based VPPs constrained to the operator's measures. The weighted sum of expected energy loss (EEL) and voltage security index (VSI) is minimized while considering AC optimal power flow equations, restrictions of network's security, and operating model of the inverter‐based VPPs. Uncertainties with an origin of the amount of demand, renewable energy, and parameters of mobile energy storage are also discussed. The uncertainties are modelled using a stochastic optimization approach relying on the unscented transformation (UT). Evaluating inverter‐based VPP performance, providing models of flexible resources such as responsive loads and mobile storages, checking network voltage security status, and modelling uncertainties using the UT method are among the innovations of this study. According to the results, it is demonstrated that the technical situation of the distribution system is improved with the help of optimal management of the VPP. With energy management of the inverter‐based VPP, the suggested design has succeeded to enhance the operating status (voltage security) of the system by approximately 33–73% (12%) in comparison to power flow studies.
... Also, the absence of developed distributed generating technology, the high cost of communication and control systems, and the regulatory uncertainties surrounding VPPs were some of the causes of lack of practical deployment. References [33][34][35][36][37][38] provides a description of the early years concept of the VPP, its difficulties, including consumer resistance to participating, economic viability in infrastructure setup, investors' perceptions of risk, and grid operators' reluctance to adopt the unique strategy. ...
... The idea elevated from the previous definition to a system that will effectively integrate the VPPs into the energy market using cogeneration units, small-scale RES and EMS High cost of communication and control systems [35] 2004 A novel concept for providing heat and energy near the load involved grouping small generators [36] 2007 VPPs were defined as a flexible mix of DERs that would aggregate numerous different DERs and produce a single operational file for control and management depending on the specifications of each DER Reluctance to adopting the idea [37] 2008 ...
Background
Virtual power plants (VPPs) represent a pivotal evolution in power system management, offering dynamic solutions to the challenges of renewable energy integration, grid stability, and demand-side management. Originally conceived as a concept to aggregate small-scale distributed energy resources, VPPs have evolved into sophisticated enablers of diverse energy assets, including solar panels, wind turbines, battery storage systems, and demand response units. This review article explores the evolution of VPPs and their pivotal roles as major stakeholders within contemporary power systems. The review opens with a definition of VPPs that clarifies both their fundamental traits and technological foundations. A historical examination of their development highlights major turning points and milestones that illustrate their transforming journey.
Main text
The methodology used for this article entailed a thorough examination to identify relevant studies, articles, and scholarly works related to virtual power plants. Academic databases were used to gather relevant literature. The literature was organized into categories helping to structure and present information in a logical flow based on the outline created for the review article. The discussions in the article show that the various functions that VPPs perform in power systems are of major interest. VPPs promote the seamless integration of renewable energy sources and provide optimum grid management by aggregating distributed energy resources, which improves sustainability. One of the important components of this evaluation involves taking market and policy considerations. Examining worldwide market patterns and forecasts reveals that VPP usage is rising, and that regulatory frameworks and incentives have a bigger impact on how well they integrate.
Conclusion
Overcoming obstacles is a necessary step towards realizing full VPP potential. For VPPs to be widely adopted, it is still essential to address technological and operational challenges as they arise. Diverse stakeholders must work together to overcome market obstacles and promote the expansion of the VPP market. This analysis highlights the potential for VPPs to propel the evolution of contemporary power systems toward a more sustainable and effective future by highlighting areas for future research and development.
... Based on the objective of aggregation, existing literature divides VPPs into two categories: commercial VPPs (CVPPs) and technical VPPs (TVPPs). CVPPs primarily focus on financial activities, and the managed DERs are not restricted to a single distribution grid [3]. TVPPs additionally consider the distribution network constraints and the managed DERs are typically within a single distribution grid [3]. ...
... CVPPs primarily focus on financial activities, and the managed DERs are not restricted to a single distribution grid [3]. TVPPs additionally consider the distribution network constraints and the managed DERs are typically within a single distribution grid [3]. TVPPs can also be referred to Active Distribution Networks (ADNs) [4]. ...
Virtual Power Plant (VPP) is an emerging concept that can effectively manage a large number of distributed energy resources (DERs). However, the inherent uncertainty of load and renewable generation poses a challenge to reliable VPP power scheduling. This manuscript proposes a novel method for day-ahead VPP scheduling with a joint probabilistic guarantee on its power availability without violating the DER constraints and network constraints. A surrogate polytope is first used to find the inner approximation of the VPP power, implicitly including the low-level DER power, DER constraints, and network constraints. Then, a multivariate Gaussian distribution is used to fit the random parameters of the surrogate polytope, after which the iterative supporting hyperplane algorithm is used to solve the VPP scheduling problem. Extensive case studies based on real-world renewable generation scenarios demonstrate the superior performance of the proposed method in out-of-sample cost and reliability, with a manageable computing complexity.
... Research into DSG is closely related to several interrelated topics. For example, there is research into rooftop PV systems (Shen et al. 2021); the integration of distributed systems into the grid from the electrical engineering aspect (Milano et al. 2007;Mori et al. 2017); the possibility of occurrence of a death spiral where the adoption of distributed generation would bidirectionally cause and be motivated by increasing electricity rates (Ali et al. 2022b;Laws et al. 2017;Muaafa et al. 2017); applications for microgrids and virtual power plants (Mahmud et al. 2020;Nosratabadi et al. 2017;Pudjianto et al. 2007); the effect of financial incentives on adoption (Ali et al. 2022a;Crago and Chernyakhovskiy 2017;Matisoff and Johnson 2017;Sarzynski et al. 2012;Simpson and Clifton 2017); disparities and equity of household rooftop solar distribution (Reames 2020); and resilience (Abbey et al. 2014;González and Rendon 2022;Wang et al. 2016;Yuan et al. 2009); among many other topics. The broad and interrelated applications domains and perspectives related to distributed generation are a driver for the analysis performed in this paper to understand the current and expected state of research. ...
... As such, they offer flexibility and other benefits to the users. In addition, VPPs can be integrated into the grid to feed power back into the grid (Pudjianto et al. 2007). As such, multiple resources including DSG and other generating resources such as wind turbines, storage, and electric vehicles can be optimized as VPPs and integrated with the electric power grid and market to maximize their benefits (Alahyari et al. 2019;Fan et al. 2020a). ...
... The functions in question may encompass various aspects such as energy generation, transmission, storage, and administration along with the integration of the blockchain network. After defining these functions, the analysis proceeds to identify its interdependencies, encompassing their interactions with each other, as well as with external systems & stakeholders (Pudjianto et al., 2007). Fig. 9 illustrates the seven primary functions that are employed to facilitate the selection of an additional component for the design, based on its operational requirements. ...
... Factors such as latency, bandwidth, scalability, and cloud connectivity have a pervasive impact on all facets of the network. Table 8 Supporting sub-system for forecasting-based modeling (Vukmirović et al., 2010;Pudjianto et al., 2007;Hernández et al., 2013;Chung et al., 2021;Wang et al., 2022). ...
Sustainable frameworks are being introduced by technological breakthroughs to address the continuously increasing demand for energy and this article presents a novel framework for a Virtual Power Plants to sustain and optimize Distributed Energy Resources (DERs) administration through blockchain technology. The multi-layered architecture integrates blockchain technology with other VPP components, such as a cloud service provider, grid and transmission operator, and forecasting of DERs, to optimize bidding and scheduling in real-time across multiple markets to enhance energy efficiency and grid stability. By employing a system engineering methodology, this framework incorporates smart meters to facilitate the transmission and reception of data i.e., voltage, and current between participants, and DERs within the network. This strategy makes it easier to advance sustainable energy sources, which advances predictive capabilities, strengthens the framework's resilience, and protects the environment. The investigation of demand response, functional and system trade-off analysis, configuration selection, and other subsystems within a decentralized network offers insights into the necessary components and challenges involved in the construction of such a system. This study contributes comprehensive assistance and valuable insights to both practitioners and researchers involved in the field of sustainable energy transition through Virtual Power Plant.
... Multiple technical solutions have been studied, including virtual power plants (VPP) and Peer-to-Peer (P2P) trading platforms. The former consolidated diverse types of DERs into a cohesive entity to interact with the power grid [27,28], while the latter allows users to trade excessive energy with their neighbors under the approval of the system operator [29,30]. They are both important and novel techniques for energy system operations with enormous distributed resources [31,32]. ...
The decarbonization of power and energy systems faces a bottleneck: The enormous number of user-side resources cannot be properly managed and operated by centralized system operators, who used to send dispatch instructions only to a few large power plants. To break through, we need not only new devices and algorithms, but structural reforms of our energy systems. Taking the Internet as a paradigm, a practicable design of the Energy Internet is presented based on the principle of standardization. A combination of stylized data and energy delivery, referred to as a Block of Energy Exchange (BEE), is designed as the media to be communicated, which is parsed by the Energy Internet Card. Each Energy Internet Card is assigned a unique MAC address, defining a participant of the Energy Internet, whose standardized profile will be automatically updated according to BEE transfers without the intervention of any centralized operator. The structure of Energy Internet and protocols thereof to support the transfer of BEE are presented. System operators will become Energy Internet Service Providers, who operate the energy system by flow control and dispatching centralized resources, which is decoupled from users' behaviors in the Energy Internet. Example shows that the Energy Internet can not only reduce carbon emissions via interactions between peers, but also promotes energy democracy and dwindles the gap in energy equity.
... 2 Virtual Power Plant (VPP) can act as a carrier of Distributed Energy Resource (DER) to manage its internal energy, to carry out combined bidding in the day-ahead energy market and the regulation market. 3,4 The functional characteristics of the commercial virtual power plant are to formulate the optimal electricity purchase and sale plan, participate in the bidding of the electricity market to obtain benefits, regardless of the impact on the safe and stable operation of the distribution network, and the geographical distribution of the distributed energy is widely distributed. 5,6 Based on the game equilibrium theory of oligopoly competition, literature 7 studied the strategies of different cooperation modes within VPP to participate in market bidding competition. ...
The distributed generation of new energy can effectively use the local endemic clean new energy and provide green power. However, due to the small scale and scattered layout of distributed generation resources, it is difficult to participate in the economic dispatch of power systems and even the competition of the power market. Virtual Power Plant (VPP) can act as a carrier of Distributed Energy Resource (DER) to manage its internal energy, to carry out combined bidding in the day‐ahead energy market and the regulation market. When virtual power plants coordinate multiple distributed energy resources to participate in electricity market transactions, the degree of disclosure of their internal privacy information will produce different trading strategies. A Stackelberg game model between multiple virtual power plant aggregators and virtual power plant operators is constructed, and the Kriging model is combined to protect the privacy information in the transactions of virtual power plant operators. Energy management for distributed generation is carried out, and the profit situation of virtual power plant operators under different strategies is analyzed.
... As previous works indicate, the substantial energy storage capacity of clusters of EVs, including the large batteries of electric buses, opens the possibility of utilising them as part of VPPs. VPPs aggregates distributed energy resources from multiple entities, including EVs, to create a distributed power plant [56]. This approach allows better grid management, provision of additional services, cost savings for energy providers, stability in energy prices for consumers, and promotion of the use of RES [57]. ...
The adoption of electric vehicles (EVs) continues to break records yearly while governments promote their widespread use to decarbonize the transportation sector, contributing to mitigating climate change. EVs offer numerous benefits, including reduced air pollution and enhanced energy efficiency. However, there are also significant challenges associated with grid stability, fleet operation, and charging infrastructure due to the rapid dissemination of EVs in urban centers. This chapter explores these challenges and provides a discussion on potential solutions to address them. The primary focus is the integration of EVs in modern power grids, exploring key components such as smart charging, vehicle-to-grid technology, EV aggregators, and dynamic pricing schemes. These factors are crucial for the deployment of reliable charging infrastructure and efficient operation of EVs. Additionally, a roadmap is presented toward a net-zero transportation system incorporating renewable energy sources and responsible battery production and disposal. In this context, this chapter provides a comprehensive overview of the most critical aspects of the integration of EVs in the grid, aiming to contribute to a more sustainable transportation future.
... In this work, we are interested in neural networks with guarantees emerging from the training procedure itself. Our motivation is to develop a scalable nonlinear predictor with inherent theoretical guarantees and low-stochasticity training for large-scale critical applications, e.g., virtual power plants [16], where reliable forecasts of distributed assets are crucial for the safe operation of the electrical power grid. ...
In this work, we propose Wasserstein distributionally robust shallow convex neural networks (WaDiRo-SCNNs) to provide reliable nonlinear predictions when subject to adverse and corrupted datasets. Our approach is based on a new convex training program for ReLU shallow neural networks which allows us to cast the problem as an exact, tractable reformulation of its order-1 Wasserstein distributionally robust equivalent. Our training procedure is conservative by design, has low stochasticity, is solvable with open-source solvers, and is scalable to large industrial deployments. We provide out-of-sample performance guarantees and show that hard convex physical constraints can be enforced in the training program. WaDiRo-SCNN aims to make neural networks safer for critical applications, such as in the energy sector. Finally, we numerically demonstrate the performance of our model on a synthetic experiment and a real-world power system application, i.e., the prediction of non-residential buildings' hourly energy consumption. The experimental results are convincing and showcase the strengths of the proposed model.
... Efficiently managing energy exchange between DERs and the network is crucial due to their capacity, like solar cells and wind farms, and their relatively unpredictable nature. The VPP concept facilitates the aggregation of DERs into a unified system, enabling energy exchange with the market and providing complementary services (Pudjianto et al., 2007;Nosratabadi et al., 2017). Additionally, integrating VPPs into the energy grid plays a vital role in promoting a sustainable and environmentally friendly power system (Nosratabadi et al., 2017). ...
The rapid expansion of renewable energy sources (RESs), such as photovoltaic (PV), wind turbine (WT), micro turbine (MT), and fuel cell (FC), has presented both opportunities and challenges to power systems, particularly in terms of environmental sustainability and economic feasibility. While RESs offer benefits like reduced environmental pollution, decreased power losses, and enhanced power quality, their intermittent nature and uncertainties pose challenges, resulting in variable generation and instability in distribution systems. To address these challenges, the concept of aggregating distributed energy resources (DERs), battery energy storage system (BESS), electric vehicles (EVs), and controllable loads into a virtual power plant (VPP) managed by an energy management system (EMS) has emerged. This study aims to determine the optimal location and size of VPPs within radial distribution system (RDS) while considering network resilience to severe weather events. The problem is formulated as an optimization task with dual objectives: minimizing the operating cost of VPPs and reducing energy not supplied (ENS) during natural disasters such as floods and earthquakes. To address this optimization problem, a novel meta-heuristic optimization algorithm called the hunting prey optimization algorithm (HPOA) is applied. HPOA serves various functions within the RDS, specifically targeting the optimization of VPP location, VPP resource management, and the objective functions. A case study is conducted, incorporating RESs, BESS, and EVs, and compared against existing algorithms such as BESA and SMA using a standard IEEE 85-bus RDS. Simulation results conducted in MATLAB demonstrate that the proposed HPOA algorithm effectively determines the optimal size and location of VPPs, leading to improved economic, operational, and resilience indices in the network.
... Two paradigms stand out: microgrids and virtual power plants (VPPs). These concepts have been extensively discussed in prior literature [18][19][20][21]. VPPs, in particular, play a pivotal role in this transition due to their reliance on the inclusion of Information and Communication Technologies (ICT) into power systems, as seen in smart grids. ...
Energy markets are crucial for integrating Distributed Energy Resources (DER) into modern power grids. However, this integration presents challenges due to the inherent variability and decentralized nature of DERs, as well as poorly adapted regulatory environments. This paper proposes a medium-term decision-making approach based on a comprehensive suite of computational tools for integrating DERs into Colombian energy markets. The proposed framework consists of modular tools that are aligned with the operation of a Commercial Virtual Power Plant (CVPP). The tools aim to optimize participation in bilateral contracts and short-term energy markets. They use forecasting, uncertainty management, and decision-making modules to create an optimal portfolio of DER assets. The suite’s effectiveness and applicability are demonstrated and analyzed through its implementation with heterogeneous DER assets across various operational scenarios.
... Level prediction for an energy storage system A more stable energy source and lower power rates have been achieved [168][169][170] computation in order to attain the optimum schedule for the VPP. Finding the optimum balance between affordability and trustworthiness in VPP functioning is the objective of this endeavor. ...
The use of distributed energy resources (DER) programs, which include separate renewable energy (RE) programs , has expanded in residential as well as commercial structures as an outcome of recent technological developments. The virtual power plant (VPP) may improve the security and reliability of an electricity grid's operations through including energy storage, changeable loads, and distributed energy resources (DER), among other characteristics. Consequently, a growing number of scholars tend to focus on VPP and providing recommendations for its improvement. In order to facilitate the incorporation of distributed generation into electricity distribution systems, cutting-edge management ideas for facilities have emerged in the last few years. As a result, it is now more crucial than ever to improve management abilities for the combining of dispersed energy output and consumption using various virtual power plants (VPPs). To increase operational profits, it's crucial to make use of their capacity to play a role in power markets. This work provides a classification scheme for, and an in-depth analysis of, recent studies that provide VPP models featuring interactions with various forms of electricity markets. The objective of this article is to find out which VPP strategy will yield the greatest possible return in each legislative scenario. These consist of the model's design, strategies for resolving complex mathematical problems, involvement in various marketplaces, and the application of the suggested models to real-world case studies. The research has been evaluated, and it has been concluded that contemporary models are more comprehensive and realistic. This article additionally elaborates on and emphasizes the VPP concept from other researchers' findings. Moreover, a number of prevalent VPP projects from throughout the globe are included. The VPP research also addresses some potential challenges and recommendations for prospective growth.
... However, the effective load capacity of VRE is unclear due to its intermittent and stochastic nature. The extension of capacity credit to renewable energy has attracted attention in the academic community but has not yet yielded a convincing conclusion [22] . The following issues require further study. ...
Under the pressure of environmental issues, decarbonization of the entire energy system has emerged as a prevalent strategy worldwide. The evolution of China's power system will increasingly emphasize the integration of variable renewable energy (VRE). However, the rapid growth of VRE will pose substantial challenges to the power system, highlighting the importance of power system planning. This letter introduces Grid Optimal Planning Tool (GOPT), a planning tool, and presents the key findings of our research utilizing GOPT to analyze the transition pathway of China's power system towards dual carbon goals. Furthermore, the letter offers insights into key technologies essential for driving the future transition of China's power system.
... However, the widespread and small-scale nature of renewable energy sources presents difficulties in their direct management by the power system. To address this, renewable energy sources can be aggregated and operated as a collective form in what is called virtual power plants (VPPs) [2]. Despite lacking a physical entity, by widely applying communication technology, optimization technology, and forecasting technology, VPPs can This work was supported in part by National Natural Science Foundation of China under Grant 52107102 and in part by National Natural Science Foundation of China under Grant U2066205. ...
The output fluctuation of renewable energies poses challenges to the power system and can reduce the profits of the energy resources in power markets with imbalance settlement. Virtual power plants (VPPs) can aggregate renewable energies to smooth the overall output fluctuations, thereby enhancing their market profits. In addition, incorporating air conditioning loads, whose energy-consuming flexibility brought by the thermal inertia of buildings is considerable, can further enhance the energy management capabilities and market profits of the VPP. To achieve this, a profit allocation model that considers the operational characteristics of air conditioning is needed, which has been seldom studied in the existing literature. This paper proposes a novel profit allocation method inspired by the bargaining game theory, which takes into account the characteristics and contributions of air conditioning to the VPP's profit. Simulation results validate that our method is not only incentive-compatible but also properly considers the contributions of each member within the VPP.
... However, the main drawback of this aggregation method is the loss of fidelity of the specific energy flows between particular regions and, consequently, the difficulty in specifying network constraints. The importance of network constraints, in particular, was highlighted by Pudjianto, Ramsay & Strbac (2007) where the addition of a transmission line constraint with a limit of 10 MW reduced the maximum operating limit of a set of generators from its maximum generation capacity of 40.25 MW to 30.4 MW. In this paper, we therefore stress an important model assumption, which is that the existing transmission infrastructure is capable of allowing the set of generators to generate up to their maximum generation capacity without breaking network constraints. ...
Objectives: The aim of this paper is to demonstrate the application of a new prototype simulation tool, ENTRUST Built Environment, to investigate district-level electrical energy generation, consumption and distribution in the Cork community in order to reduce operating energy consumption, cost and carbon emissions. The ENTRUST Built Environment tool is part of a suite of tools designed to address the aims of the ENTRUST project, which are to map Europe's energy system, develop an in-depth understanding about how human behaviour around energy is shaped by technological systems and drive the adoption of new technologies at a community level. Methods & Key Outcomes: The ENTRUST Built Environment tool is a high-level design tool that allows users to define simple district models of electricity distribution networks and make quantitative estimations of the impact of various interventions by performing energy simulations. The set of interventions available in the tool includes both building design options and a set of Distributed Energy Resources (DERs), which can represent local or centralised DERs based on their user-specified position in the distribution network. The energy simulations combine calculations of building electricity loads, generation, consumption and/or storage of electricity by DERs and a Virtual Power Plant (VPP) energy aggregation calculation in order to allow simulations of the demand, supply, storage and distribution of electricity throughout the network, including losses, fuel and carbon calculations. Baseline and intervention models are presented for the University College Cork campus, which show that various interventions, such as building retrofit options and the inclusion of renewable DERs, could reduce carbon emissions and operating costs. Novelty: Simulations of distributed energy systems are nothing new in the literature, but they are often very sophisticated because they need to meet the demands of academic researchers and utilities engineers. Consequently, there is a palpable need for user-friendly, scalable, accurate energy tools that allow urban planners, policy makers, stakeholders and services engineers to make quick and quantitative estimations of the impact of building design options and DERs on urban commodity distribution networks. The ENTRUST Built Environment tool is designed from the ground-up to meet these requirements and provide a tool that integrates building energy loads with district-level aggregation. Consequently, we aim to develop a unique tool that helps to enable the adoption of new technologies by communities, allowing them to make decisions that reduce the operating costs and carbon emissions of DERs and buildings.
... The HPS design in NIIs foresees the establishment of an aggregate station comprising only storage and variable renewable generation facilities, akin to the concept of VPPs [112][113][114][115][116][117][118]. Contrary to the classic VPP design, HPSs exclude conventional generation assets from their components, qualifying as purely renewable plants with enhanced dispatchability capabilities originating from the presence of storage and the rules governing their market participation. ...
Electricity storage is crucial for power systems to achieve higher levels of renewable energy penetration. This is especially significant for non-interconnected island (NII) systems, which are electrically isolated and vulnerable to the fluctuations of intermittent renewable generation. The purpose of this paper is to comprehensively review existing literature on electricity storage in island systems, documenting relevant storage applications worldwide and emphasizing the role of storage in transitioning NII towards a fossil-fuel-independent electricity sector. On this topic, the literature review indicates that the implementation of storage is a prerequisite for attaining renewable penetration rates of over 50 % due to the amplified requirements for system flexibility and renewable energy arbitrage. The analysis also identifies potential storage services and classifies applicable storage archi-tectures for islands. Among the available storage designs, two have emerged as particularly important for further investigation; standalone, centrally managed storage stations and storage combined with renewables to form a hybrid plant that operates indivisibly in the market. For each design, the operating principles, remuneration schemes, investment feasibility, and applications discussed in the literature are presented in-depth, while possible implementation barriers are acknowledged. The literature on hybrid power plants is mainly focused on wind-powered pumped-hydro stations. However, recently, PV-powered battery-based hybrid plants have gained momentum due to the decreasing cost of Li-ion technology. On the other hand, standalone storage establishments rely heavily on battery technology and are mainly used to provide flexibility to the island grid. Nevertheless, these investments often suffer from insufficient remunerating frameworks, making it challenging for storage projects to be financially secure.
... A collection of distributed energy resources, such as renewable energy, energy storage, controllable loads, networking, prosumers, and consumers, is known as a virtual power plant (VPP). Users are promised that their energy issues will be resolved after the resources are contributed to the power system in the form of a component [112,113]. The formation of such clusters results in a smart grid network that is self-sufficient and enhances the trading of energy. ...
Energy generation and management are relevant for both utilities and electricity users, and they can be improved by incorporating sophisticated technology on smart grid. This opens up the possibility of transforming existing industries into a new era of enhanced networks that will give an intelligent, responsive, and bi-directional automatic management system for power generation , transmission, and distribution. The traditional grid is transitioning from a centralized generation structure to a more dispersed smart grid structure. In order to build this new decentralized structure, loads must be fully integrated into the grid and adequately separated from the main grid. The smart grid allows for the integration of loads that are clean, cost-effective, and efficient. The growing level of distributed generation (DG) integration puts the grid under strain, resulting in perturbations with dynamic responses. This paper discussed a detailed review of current developments in smart grid through the integration of renewable energy resources (RERs) into the grid. The purpose of this study is to present a comprehensive, up-to-date review of RERs integration on grid to evaluate research directions, progress, challenges, and potential solutions. It focuses on the concepts and structure of smart grids, followed by an in-depth examination of smart grid overview, energy sources, inertia issues, and applications. This evaluation will assist other researchers investigating smart grid energy resources in identifying research problems and gaps.
... Considering that many types of distributed energy in VPP may belong to different property rights, game theory is usually used to describe the multi-agent interactive optimization process of VPP participating in power grid dispatching operations [4] . For reasons such as privacy protection, there are often situations, where the game parties are unwilling to share information or some information, cannot be obtained [5] . ...
This paper proposes a multi-agent collaborative optimization method for virtual power plants based on the Bayesian game. Focusing on the internal scheduling of VPP, taking demand response load as the analysis object, aiming at the interactive optimization relationship between multiple intelligent communities in the virtual power plant under this scenario, a multi-agent collaborative optimization model of the virtual power plant is established by using Bayesian game theory. The effectiveness of the constructed game model and algorithm is verified by solving the actual example of the virtual power plant and analyzing the corresponding simulation results.
... Given the myriad of benefits associated with operating the DERs as a coordinated fleet, this concept has gained momentum recently and has been termed as Virtual Power Plants (VPPs). A VPP is a collection of DERs that are coordinated to have visibility, controllability, and impact at the transmission level of the power network [5]. VPPs are discussed further in the background [section 2]. ...
p>We present a hierarchical framework aimed at decentralizing the distribution systems market operations using localized peer-to-peer energy markets. A hierarchically designed decision-making algorithm approaches the power systems market operations from a bottom-up perspective. The three layers of the hierarchical framework operate in orchestration to enable prosumers (the grass-root ac- tors) to maximize their revenues - hence, a prosumer-centric framework. The design of the framework incorporates existing smart grid technologies (Virtual Power Plants, Microgrids, Distributed Energy Resources) and redefines their functional objectives to align them with the decentralization paradigm focused on empowering the bottom-up grid operations approach. On one hand, the framework is enabling prosumers with simultaneous access to the buy-sell choices that help them maximize their cost savings while ensuring their consumption patterns and preferences are not being traded off as a result of top-down operational decisions. On the other hand, it is designed to operate in harmony with the existing top-down grid operations mechanisms - thereby reducing the potential friction in its adaptation. This marriage of the top-down and bottom-up operational approaches is facilitated through meticulous orchestration of operational timescales. The framework’s novel design also incorporates scalability and interoperability considerations, thereby tackling the challenge of decentralization holistically.</p
... Given the myriad of benefits associated with operating the DERs as a coordinated fleet, this concept has gained momentum recently and has been termed as Virtual Power Plants (VPPs). A VPP is a collection of DERs that are coordinated to have visibility, controllability, and impact at the transmission level of the power network [5]. VPPs are discussed further in the background [section 2]. ...
p>We present a hierarchical framework aimed at decentralizing the distribution systems market operations using localized peer-to-peer energy markets. A hierarchically designed decision-making algorithm approaches the power systems market operations from a bottom-up perspective. The three layers of the hierarchical framework operate in orchestration to enable prosumers (the grass-root ac- tors) to maximize their revenues - hence, a prosumer-centric framework. The design of the framework incorporates existing smart grid technologies (Virtual Power Plants, Microgrids, Distributed Energy Resources) and redefines their functional objectives to align them with the decentralization paradigm focused on empowering the bottom-up grid operations approach. On one hand, the framework is enabling prosumers with simultaneous access to the buy-sell choices that help them maximize their cost savings while ensuring their consumption patterns and preferences are not being traded off as a result of top-down operational decisions. On the other hand, it is designed to operate in harmony with the existing top-down grid operations mechanisms - thereby reducing the potential friction in its adaptation. This marriage of the top-down and bottom-up operational approaches is facilitated through meticulous orchestration of operational timescales. The framework’s novel design also incorporates scalability and interoperability considerations, thereby tackling the challenge of decentralization holistically.</p
... In this sense, the scientific literature proposes the concept of virtual power plants [9][10][11]. VPP aggregates and manages multiple DERs, giving the System Operator observability and control of a set of distributed elements [12]. In this way, through the VPP, the exploitation of the operational flexibility of the distributed units is facilitated. ...
Distributed energy resources (DERs) are elements that actively participate in the supply of renewable energy and contribute to the decarbonization of the power system. However, they lack two factors necessary to take advantage of their operational flexibility: observability and controllability. In this sense, Virtual Power Plants (VPPs) are a feasible alternative to provide the necessary requirements for the optimal management of a set of distributed units. Therefore, knowledge of the technical and energy characteristics of each unit that makes up the VPP is a necessary condition for the effective integration of DERs into the power system. This paper proposes a methodology to graphically represent, quantify and exploit the aggregate operational flexibility of a set of units. The proposed methodology is based on five metrics related to active and reactive power, which serve as a tool to facilitate the VPP Operator's decision-making under uncertainty. Consequently, achieving the coordinated operation of several distributed units makes it possible to achieve common objectives. For instance, frequency and voltage regulation, compliance with a planned power curve, or dealing with the variability of renewable energies. The proposal is applied to a theoretical case study and through real operational tests between a hydroelectric unit and a photovoltaic plant. Finally, it is shown that the results obtained are a useful tool in real-time.
As the electrification process advances, enormous power flexibility is becoming available on the demand side, which can be harnessed to facilitate power system decarbonisation. Hence, this paper studies the carbon‐aware demand response (C‐DR) paradigm, where individual users aim to minimise their carbon footprints through the optimal scheduling of flexible load devices. The specific operational dynamics and constraints of deferrable loads and thermostatically controlled loads are considered, and the carbon emission flow method is employed to compute users' carbon footprints with nodal carbon intensities. Then, an optimal power dispatch model that integrates the C‐DR mechanism is proposed for low‐carbon power system operation, based on the carbon‐aware optimal power flow method. Two solution algorithms, including a centralised Karush–Kuhn–Tucker reformulation algorithm and an iterative solution algorithm, are developed to solve the bi‐level power dispatch optimisation model. Numerical simulations on the IEEE New England 39‐bus system demonstrate the effectiveness of the proposed methods.
The Distributed Energy Resources (DERs) and their integration in utility system in terms of visibility and handling capacity can be improved by developing Virtual Power Plant (VPP). These DERs further by making an appropriate interface with system components operates and manages the power market. Thus representation of DERs in such VPPs results in low cost power plant planning and estimation. Further, this could be well willful replacement for predictable Power Plants (PPPs) in terms of energy creation and installed capacities. These VPPs can be a better visualization tools and on providing analytical interface can be a good energy forecasting environment. The paper gives a review of such virtual power plant environments. The study further overlays and gives the research findings of different analytical DER aggregative methods to study the demand response of a chosen plant as virtual power plant.
The use of distributed energy resources (DER) programs, which include separate renewable energy (RE) programs, has expanded in residential as well as commercial structures as an outcome of recent technological developments. The virtual power plant (VPP) may improve the security and reliability of an electricity grid's operations through including energy storage, changeable loads, and distributed energy resources (DER), among other characteristics. Consequently, a growing number of scholars tend to focus on VPP and providing recommendations for its improvement. In order to facilitate the incorporation of distributed generation into electricity distribution systems, cutting-edge management ideas for facilities have emerged in the last few years. As a result, it is now more crucial than ever to improve management abilities for the combining of dispersed energy output and consumption using various virtual power plants (VPPs). To increase operational profits, it's crucial to make use of their capacity to play a role in power markets. This work provides a classification scheme for, and an in-depth analysis of, recent studies that provide VPP models featuring interactions with various forms of electricity markets. The objective of this article is to find out which VPP strategy will yield the greatest possible return in each legislative scenario. These consist of the model's design, strategies for resolving complex mathematical problems, involvement in various marketplaces, and the application of the suggested models to real-world case studies. The research has been evaluated, and it has been concluded that contemporary models are more comprehensive and realistic. This article additionally elaborates on and emphasizes the VPP concept from other researchers' findings. Moreover, a number of prevalent VPP projects from throughout the globe are included. The VPP research also addresses some potential challenges and recommendations for prospective growth.
The growing deployment of new flexible resources, renewable energy resources (RES), and Electric Vehicles (EV) in the distribution system necessitates new methods to manage the distribution system operation optimally. In this regard, our paper, by deploying the concept of Virtual Power Plants (VPPs) as the aggregation of multiple agents and local power markets that are known as important tools for future power systems presents a management framework for the distribution systems with high penetration of EVs. To this end, the interaction of the DSO and VPPs is studied based on their strategic behaviour through the local active and reactive power markets. This way, a bilevel optimization approach is proposed where the DSO aims to minimize its operational cost by setting the operation point of its own facilities and determining the hourly active and reactive power prices for VPPs considering the distribution system congestion in the upper level. At the lower level, VPPs try to minimize their cost by scheduling their assets based on the local active and reactive power prices set by the DSO. The results show how nodal pricing in local markets could improve the distribution system operation. In addition, it is indicated that Reactive Power Support (RPS) from VPP-owned EVPLs can decrease the VPPs’ cost by gaining profit in the reactive power market and facilitating their participation in the active power market.
The power grid is undergoing a transformation from synchronous generators (SGs) toward inverter-based resources (IBRs). The stochasticity, asynchronicity, and limited-inertia characteristics of IBRs bring about challenges to grid resilience. Virtual power plants (VPPs) are emerging technologies to improve the grid resilience and advance the transformation. By judiciously aggregating geographically distributed energy resources (DERs) as individual electrical entities, VPPs can provide capacity and ancillary services to grid operations and participate in electricity wholesale markets. This paper aims to provide a concise overview of the concept and development of VPPs and the latest progresses in VPP operation, with the focus on VPP scheduling and control. Based on this overview, we identify a few potential challenges in VPP operation and discuss the opportunities of integrating the multi-agent system (MAS)-based strategy into the VPP operation to enhance its scalability, performance and resilience.
The operation model of a virtual power plant (VPP) that includes synchronous distributed generating units, combined heat and power unit, renewable sources, small pumped and thermal storage elements, and electric vehicles is described in the present research. The VPPs are involved in the day-ahead energy and regulation reserve market so that escalate their profit by selling their generated power. This is formulated as an optimization problem with maximization of VPPs profit subject to constraints of the VPP’s sources and storage, and VPP flexibility limits. Also, uncertain nature of renewables output power, prices of the markets, electric vehicles parameters, and reserve parameters are taken into account. Then, uncertain parameters are properly modeled by incorporating the Unscented transformation (UT)-based stochastic optimization, and GAMS software is adopted to test the efficacy of the presented approach so that the VPP’s operation and economic situation is suitably improved.
A R T I C L E I N F O Keywords: Circular economy and community-based virtual power plant (CE-cVPP) Community-based virtual power plant (cVPP) Circular economy (CE) Integrated energy system (IES) Sustainable development Renewable energy Virtual power plant (VPP) Digital energy Energy life cycle A B S T R A C T Virtual power plants possess the capability to effectively manage the inherent conflict between dispersed electricity generation and user demand, hence optimising market advantages. Nevertheless, the presence of severe weather conditions, geopolitical factors, the phenomenon of global warming, and several other global concerns greatly enhance the level of uncertainty related to the establishment of sustainable energy sources and the corresponding demand from users. Consequently, these factors expose the limitations of virtual power plants in effectively controlling power supply. The active involvement of community members has the potential to invigorate the process of development. This study presents a novel model, referred to as the CE-based cVPP (CE-cVPP) model, that combines the principles of circular economy (CE) and community-based virtual power plant (cVPP). The objective of this model is to enhance the effectiveness of sustainable development efforts. This research redefines the concept of a CE-cVPP, elucidates its defining features, scopes, and classification, and constructs a technological framework, together with an explanatory community case structure. The CE-cVPP energy life cycle framework is constructed based on the principles of the circular economy paradigm. This study investigates the enduring and sustainable benefits of the CE-cVPP across four dimensions: energy, environment , economics, and society. In conclusion, this paper provides a comprehensive examination of the energy, digital, and circular economy perspectives, encompassing critical analysis, problems, prospective analysis, and future directions.
Regulators in Belgium and the Netherlands use different mechanisms to mitigate generation market power. In Belgium, antitrust authorities oblige the incumbent to sell financial Virtual Power Plants, while in the Netherlands regulators have been discussing the use of physical Virtual Power Plants. This paper uses a numerical game theoretic model to stimulate the behaviour of the generation firms and to compare the effects of both systems on the market power of the generators. It shows that financial Virtual Power Plants are better for society.
The aim of the work is the integration of combined heat and power (CHP) micro-units into the low voltage network under technical and economical point of view. The whole power and gas consumption of a new residential district are measured and recorded in fifteen minutes intervals during one year. Based on these power and gas load curves the basis of a virtual power plant with CHP micro-units is analysed. With a simulation tool the operation of a CHP micro-unit is simulated. The results show the behaviour of single units in different types of houses and of all units in a virtual power plant. Furthermore they show how the operation of a CHP micro-unit must be optimized for the operation in a virtual power plant. On the basis of this technical parameters a business model for an virtual control power plant is presented and calculated
The virtual power plant unit was conceptualized to allow for the more effective integration of renewable energies with the aid of co-generation power units. The virtual power unit must be able to contribute to a reliable and environmentally oriented energy supply. This paper examines the exogenous factors for the use of the virtual power plant based on the following criteria: development of the energy management system (EMS) to reach the maximum utilization ratio; reliable production of electricity, heat and cooling energy; the use of renewable energies; electric network coupling requirements of the virtual power plant; generation costs of the produced energy by the virtual power plant; and greenhouse gas emissions.
Characteristics of linear programming (LP) and nonlinear
programming (NLP)-based optimal power flows (OPFs) are discussed, which
allocate (auctions) reactive power support among competing generators in
a deregulated environment. LP-based AC OPF algorithms are frequently
used in practice to optimise the operation and reinforcement of power
systems owing to their reliability. The alternative methods are
NLP-based OPF algorithms, which have developed rapidly in this past
decade motivated by the performance of interior-point algorithms. While
LP algorithms offer reliable performance, the latter offer computation
speed and accuracy for achieving the solution. An LP-based direct
reactive OPF and a NLP-based direct reactive OPF using an interior-point
algorithm, which concurrently solve load flow and optimisation problems,
are developed and analysed. The issue of performance arises from the
difficulties associated with the convergence of a direct LP OPF and the
need for a technique to enforce the convergence of such an OPF. As the
LP OPF may not converge spontaneously to the optimal point, questions
arise as to whether such approaches are appropriate for facilitating the
provision of VAr support in a competitive environment. Although the
overall reactive requirement calculated by the OPF may be reasonably
accurate, a generator's individual commitment may vary considerably. In
contrast, the NLP OPF shows different characteristics: it converges
spontaneously and the solutions are accurate. A comparison between those
two streams of algorithms is presented. Extensive case studies are
carried out over the IEEE-118 bus system to illustrate the impact of
different starting points on the solutions for both LP and NLP
algorithms
Saar Targets Balancing Market
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