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

Abstract

Virtual power plants (VPPs) are becoming more popular worldwide due to their diversified characteristics, the potential to provide energy flexibility, durability, and smarter electrical grid system, as well as economic benefits. Despite its significance, VPP currently has a very limited presence in the energy markets. A lack of systematic assessment of the multiple factors has been identified as the main reason for VPP's limited admittance into the energy markets. This necessitates research initiatives that consider superior approaches and frameworks for the sustainable future of VPPs. A novel multi-aspect framework (MAF) is proposed in this study to examine objectively multi-dimensional aspects. A STEEP (social, technological, environmental, economic, and political) analysis tool is used to assess the challenges, opportunities, and benefits of VPP in the energy market. The approach outlines the essential factors and actions needed to address the challenges of VPP admittance in the energy markets. This study demonstrated that there is still more work to be done to support the fast and widescale adoption of sustainable VPP applications. For this reason, a more favourable policy and regulatory framework based on social, technological, economic, environmental, and policy considerations are necessary to realize the genuine contributions of a VPP.