Demand Response Strategy of a Virtual Power Plant for Internal Electricity Market

Abstract

Operational challenges are expected when a large amount of wind and solar energy is added to the electricity networks. It is necessary to introduce new technologies to allow more energy portfolio integration into power systems in order to compensate for the intermittent nature of renewable energy sources (RESs) such as wind and solar power due to their fluctuating nature. A potential solution to the problem of renewable energy integration in power market transactions is the virtual power plant (VPP). A VPP is a novel and smart approach of integrating distributed energy resources (DERs) such as demand response (DR) and energy storage systems (ESS). A VPP could exploit DERs and demand-side participation to mitigate peak loads and thus sustain grid stability. This paper presents a DR strategy of a VPP for simulating energy transactions within the VPP internal electricity market. The method assesses the impact of the DR program on renewable energies integration aiming to minimize VPP operating costs over the short-term planning horizon. Stochastic programming theory is used to address the optimization problem while protecting the interests of the end users. Preliminary findings show that peak load has been reduced while the overall cost of operating has decreased.

Planning, Operation, and Design of Market-Based Virtual Power Plant Considering Uncertainty

“…where v, c, and k represent the wind speed, Weibull PDF scale index, and shape index, respectively. Therefore, the WT module output power can be examined by employing its power curve [22][23][24].…”

“…Energy storage system operation: The energy storage system operation is presented from Equations ( 17) to (23)…”

Virtual power plant challenges, opportunities and targets analysis in the current electricity markets

“…It is therefore crucial to accommodate smart technology in the form of VPP to combat these challenges. Implementing VPPs is in this scenario the most well-liked electrical grid update [6] [7]. A VPP is a unified platform that is being updated and upgraded by adding new technologies that would enable bidirectional communication between the supplier and consumer [8].…”