Techno-economics analysis of battery energy storage system (BESS) design for virtual power plant (VPP)–A case study in Malaysia

Abdullah, Wan Syakirah Wan; Osman, Miszaina; Kadir, Mohd Zainal Abidin Ab; Verayiah, Renuga; Aziz, Nur Fadilah Ab; Rasheed, Mohamed Abdul

doi:10.1016/j.est.2021.102568

Cited by 23 publications

(4 citation statements)

References 17 publications

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“…Leaving the DA and ID markets: Some researchers have investigated VPP success in a low-uncertainty market. The balancing and real-time markets are popular low-uncertainty markets in which the VPP signs a contract and quickly delivers power [27,28]. In other words, shortening the time between final bid submission and power delivery is a way to reduce uncertainty.…”

Section: Literature Reviewmentioning

confidence: 99%

The Reliability and Profitability of Virtual Power Plant with Short-Term Power Market Trading and Non-Spinning Reserve Diesel Generator

Nadimi,

Takahashi,

Tokimatsu

et al. 2024

Energies

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This study examines the profitability and reliability of a virtual power plant (VPP) with the existence of a diesel genset (DG) in the day-ahead (DA) and intra-day (ID) power markets. The study’s unique contribution lies in integrating the VPP system with non-spinning reserve DG while limiting the DG operation via minimum running time and maximum number of switching times (on/off) per day. This contribution decreases the renewables’ uncertainty and increases the VPP’s reliability. Moreover, the study proposes an optimization model as a decision-making support tool for power market participants to choose the most profitable short-term market. The proposed model suggests choosing the DA market in 62% of time (from 579 days) based on estimated VPP power supply, and market prices. Even though there is uncertainty about VPP power supply and market prices, the division between the plan and actual profits is 1.8 × 106 Japanese yen [JPY] per day on average. The share of surplus power sold from the mentioned gap is 5.5%, which implies the opportunity cost of inaccurate weather forecasting. The results also show that the reliability of the VPP system in the presence of a DG increases from 64.9% to 66.2% for 14 h and mitigates the loss of power load by 1.3%.

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Section: Literature Reviewmentioning

confidence: 99%

The Reliability and Profitability of Virtual Power Plant with Short-Term Power Market Trading and Non-Spinning Reserve Diesel Generator

Nadimi,

Takahashi,

Tokimatsu

et al. 2024

Energies

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“…The concern, in this case, is related to the amount of flexibility needed to assure the stability of the local power systems [91]. One of the solutions to this problem, proposed in [79], is the battery energy storage system. This technology provides good opportunities in mitigating some of the power system issues.…”

Section: Local Energy Autonomymentioning

confidence: 99%

Virtual Power Plant Optimization in Smart Grids: A Narrative Review

2022

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Virtual power plants (VPPs) are promising solutions to address the decarbonization and energy efficiency goals in the smart energy grid. They assume the coordination of local energy resources such as energy generation, storage, and consumption. They are used to tackle problems brought by the stochastic nature of renewable energy, lack of energy storage devices, or insufficient local energy flexibility on the demand side. VPP modeling, management, and optimization are open to research problems that should consider, on one side, the local constraints in the operation of the energy resources and power flows and the energy grid’s sustainability objectives on the other side. There are multiple goals to create a VPP, such as to deliver energy services on a market or to the grid operator, to operate a microgrid in autonomy decoupled from the main grid, or to sustain local energy communities. In this paper, we present the results of a narrative review carried out on the domain of VPP optimization for the local energy grid integration. We have defined a search strategy that considers highly rated international databases (i.e., Elsevier, IEEE, and MDPI) in a six-year timeframe and applied objective inclusion/exclusion criteria for selecting articles and publications for the review; 95 articles have been analyzed and classified according to their objectives and solutions proposed for optimizing VPP integration in smart grids. The results of the study show that VPP concepts and applications are well addressed in the research literature, however, there is still work to be done on: engaging prosumers and citizens in such a virtual organization, developing heuristics to consider a wider range of local and global constraints and non-energy vectors, and to decentralize and make transparent the services delivery and financial settlement towards community members. This study can help researchers to understand the current directions for VPP integration in smart grids. As a next step we plan to further analyze the open research directions related to this problem and target the development of innovative solutions to allow the integration of multi-energy assets and management of cross energy sector services in energy communities.

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“…In addition, the author also emphasized the impact of ancillary services on VPP transactions. Reference [27] analyzed the technology and economy of the energy storage system in VPP, and discussed its ability to reduce the peak cost.…”

Section: Introductionmentioning

confidence: 99%

Optimal Energy Storage Configuration of Prosumers with Uncertain Photovoltaic in the Presence of Customized Pricing-Based Demand Response

Pan,

Chen

2024

Sustainability

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Setting an acceptable pricing strategy to attract prosumers to participate in demand response and orderly configure energy storage is a critical topic for virtual power plants (VPPs) in improving sustainable development. Based on this, this paper proposes a two-layer iterative optimization to develop a customized pricing-based demand response for energy storage with uncertain photovoltaic (PV) for prosumers. In the upper layer, the VPP formulates a customized price consisting of a two-part electricity price, on-grid electricity price and auxiliary service price according to the load characteristics of prosumers, so as to make the power supply and demand of prosumers more controllable. In the lower layer, prosumers adjust their energy storage configurations and energy consumption behavior according to the price signal, considering the uncertainty of PV. The research shows that the proposed optimization approach can encourages prosumers to configure energy storage, and explore user-side flexibility resources. The full utilization of energy storage has increased the PV output of the prosumers by 10%, and its benefits have also increased by 7%.

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Techno-economics analysis of battery energy storage system (BESS) design for virtual power plant (VPP)–A case study in Malaysia

Cited by 23 publications

References 17 publications

The Reliability and Profitability of Virtual Power Plant with Short-Term Power Market Trading and Non-Spinning Reserve Diesel Generator

The Reliability and Profitability of Virtual Power Plant with Short-Term Power Market Trading and Non-Spinning Reserve Diesel Generator

Virtual Power Plant Optimization in Smart Grids: A Narrative Review

Optimal Energy Storage Configuration of Prosumers with Uncertain Photovoltaic in the Presence of Customized Pricing-Based Demand Response

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