Virtual power plants novel electro-economical modeling approach

fatma elzahraa magdy, D. K. Ibrahim, and W. Sabry, "Virtual power plants novel electro-economical modeling approach", Cigre Egypt 2019, The Future of Electricity Grids: Challenges and Opportunities, Egypt, 6-8 March 2019.

Date Presented:

6-8 March 2019


From about fifteen years passed, a new term was proposed for the first time by Dielmann and Velden: "Virtual Power Plant (VPP)", and they asked about if the VPPs can contribute as a reliable and environmentally oriented energy supply, or not?, at this moment, they considered some problems that must be examined to insure the success of this idea; like: management of such a system (optimal utilization), adaptation of VPP with the network connected to (reliability), markets (retail and wholesale) … etc. If these problems are solved, then the VPP has a large opportunity to deliver an important contribution as an economic, reliable and nonpolluting energy supply system. The market is the dominant factor for the success of VPPs being. Before the age of distributed generation (DG), the energy delivery pricing model was the cost against service. The model states that consume (buy) energy then pay -buy and pay-. When the age of renewables raised up, the model of buy and pay is shifted away to a new market based pricing model: pay at first and then buy. Another conceptual model starts to appear including active demand side participation using the transactive energy concept. In this paper, a new combined model for market and electrical performance of VPPs is presented; the electro-economical model (EEM). The model will include the four basic components of any VPP: dispatchable power plants, flexible loads, storage units, and stochastic generating units. Two main targets for the proposed modeling: optimal operation of VPPs, and active network energy management of VPPs. The VPP can earn profit from the market and as a result, its objective reduces to maximizing its profit (ρ). Energy management in a VPP or active network management means the optimal operation of this VPP in order to manage energy flow. Optimal operation is based on a stochastic basis of energy sources and multi-market framework.