Enhancing Virtual Power Plant Profitability via Coordinated Resources and Demand Response

Abstract

Today, the limitations associated with fossil fuel consumption and the growing concerns over environmental pollution have led to an increased reliance on distributed generation resources. At the same time, the role of responsive loads in enhancing network management has gained significant importance. The integration of these elements, alongside energy storage systems, forms what is known as a Virtual Power Plant (VPP). A VPP aggregates distributed generation units, responsive loads, and storage facilities, all coordinated and managed through a central energy management system. The primary objective of this thesis is to develop an effective management framework for the operation of a VPP within the electricity market environment, with the goal of maximizing the profitability of all participating components. In this study, the uncertainties associated with wind turbine output power and fluctuations in energy and reserve market prices were explicitly considered as stochastic variables .The simulation results demonstrate that the proposed probabilistic optimization model enables the VPP to effectively manage these uncertainties. In such a way, the model assures the variability of wind power and the instability of market prices is minimally deficient, and thus there occurs a dramatic hinge in the general profitability of the aggregated system as preferred by the factors of the model.