top of page
Problems like the "unmanageability" of the system can be overcome by directing two-way energy flows, including prosumers and advanced storage systems. Aggregating production allows for a more stable electricity supply, and a new player, the aggregator, manages a group of facilities within a certain area. The aggregator, as a collaborative commons, actively manages demand.
​A Virtual Power Plant (VPP) is an innovative model that connects various energy sources, such as solar panels, wind turbines, and fuel cells, to create a controlled and efficient unit. This concept allows for local energy production without the need for long-distance transmission and is supported by a computer system managed by the distribution system operator. Participants in this system play an active role in the energy system, enabling their strong involvement.
Highlighted News
Digital platform as a business model for energy utilities of the future: The insight
The main focuses in VPP research are:
Feasibility of DER participation in the market
1.
Optimization of VPP control and coordination
2.
Design of VPP and the electrical system
3.
The use of renewable energy sources is increasing globally, and VPP’s play a key role in optimizing the performance of different sources and solving challenges faced by grid operators.
The sources covered by a VPP can include micro-CHP, wind turbines, solar photovoltaic energy, small hydropower plants, small hydropower plants without storage, biomass plants, diesel generators, or battery energy storage systems.
Distributed energy resources (DER) can solve peak electricity demands and generate extra energy during periods of low demand. This energy can be sold on the electricity market. DER’s can be grouped and managed from a single central unit, making them visible in the energy market. This approach is open to all types of energy production technologies.
In addition to distributed energy resources, a Virtual Power Plant also consists of sensors and measuring devices that collect data on energy production and consumption. This data is then processed and analyzed to enable optimal management of energy production and consumption in the Virtual Power Plant.
A Virtual Power Plant (VPP) is an innovative model that connects various energy sources, such as solar panels, wind turbines, and fuel cells, to create a controlled and efficient unit.
VPPs can manage units that are far apart using a hierarchical control strategy that virtually combines the capacities and flexibilities of various Distributed Energy Resources (DERs) within the VPP. This improves the operation of the power system. By optimizing the use of renewable energy sources, VPPs help balance supply and demand, making the grid more stable and reliable.They also enable small energy producers to participate, empowering consumers and promoting local energy generation. VPPs play a vital role in the green energy transition by enabling better integration of renewable energy, reducing greenhouse gas emissions, and supporting new technologies for a sustainable energy sector. Overall, they offer a new way to manage energy, helping to meet climate goals and support sustainable economic growth.
Architecture of a Virtual Power Plant
The architecture of a Virtual Power Plant (VPP) is designed to integrate different distributed energy resources (DER) into a single, coherent system that can be managed centrally or in a distributed manner. There are several ways to classify VPP’s, one is based on the control method used:
A Centralized Controlled VPP
type of virtual power plant managed by a single central control unit. This unit coordinates the activities of all individual production devices (such as solar panels, wind turbines, energy storage batteries, etc.) to ensure the VPP operates optimally according to the needs of the power system.
1.
​A Distributed Controlled VPP
uses distributed control logic based on collaboration and coordination among DER’s within a group. In this type of VPP, distributed energy resources share information and make decisions together, allowing for better optimization of production and load management according to current demand.
2.
​A Fully Distributed VPP
means that system management and energy production coordination decisions are distributed among the DER’s. Each DER in the VPP acts independently and has some autonomy in deciding its production.
3.
Another classification of VPP’s includes two categories: Technical Virtual Power Plant (TVPP) and Commercial Virtual Power Plant (CVPP).
A Technical Virtual Power Plant consists of distributed energy resources located within a specific geographic area and collaborates in managing local power systems for the distribution system operator. It also provides system balancing and ancillary services for the transmission system operator. Through collaboration with the Commercial Virtual Power Plant, the technical VPP obtains information about all distributed sources in the network, which is then used alongside detailed data about the network itself, such as topology and constraints, to assess the contribution of the distribution network to the transmission network.
Functions of the TVPP include:
Visibility of DER’s to the system operator
1.
Contribution of DER’s to system management
2.
Optimal use of DER’s
3.
The Commercial Virtual Power Plant (CVPP) primarily focuses on the costs and operational characteristics of its distributed energy units. The CVPP actively participates in energy markets, whether through trading or providing services, and enables smaller energy sources to access the market.
To conclude, TVPP is responsible for the stability of the power system and the Commercial Virtual Power Plant aggregates distributed energy sources to create a portfolio for participation in energy markets.
Functions of the CVPP include:
2.
Managing the characteristics of DER’s
1.
​Forecasting production and consumption, along with optimized production allocation
2.
Assisting individual DER units in participating in energy markets through bids and sales
3.
Decentralized Energy Management System
Operators like Virtual Power Plants aggregate Distributed Energy Resources (DER’s) to behave like traditional power plants with standard attributes such as minimum/maximum capacity, ramp-up rate, and ramp-down rate. They participate in markets to sell electricity or provide ancillary services. The aggregator controls a central information system in which data related to weather forecasts, wholesale electricity prices, and general trends in electricity supply and consumption are processed to optimize the operation of the DER’s included in the Virtual Power Plant.Based on these previously defined requirements, a software package for decentralized energy management called DEMS has been developed. The DEMS system is not a replacement for the automation equipment needed to manage the components of the energy park. At least local automation devices must be available to ensure the basic functioning of decentralized energy units and to ensure safety for components and personnel in the absence of the DEMS system. The central point of the VPP’s operation is the energy management system. A key component of DEMS is its connection to the distribution network management system and the transmission network management system. This connection allows for the exchange of important information about the state of the grid and the capabilities of the VPP. . The functions of DEMS can be divided into planning functions and control functions. The relevant planning functions include weather forecasting, load forecasting, generation forecasting, and unit commitment. Control functions include generation and load management, exchange monitoring, as well as online optimization and coordination. Planning functions consider a time period of one to seven days, with time resolution depending on the billing periods for energy buying and selling, e.g., 15, 30, or 60 minutes.
DEMS acts as a bridge that connects the VPP with the distribution and transmission networks, ensuring transparency and synchronization of data.
Challenges of Virtual Power Plants
Once Virtual Power Plants (VPP’s) are established and distributed energy resources (DER’s) are activated, energy management must be executed to ensure grid stability and maximize energy production. However, managing the energy of Virtual Power Plants presents a series of challenges.
First. The diversity of characteristics and capabilities of individual DER’s, which can lead to difficulties in controlling their operation and achieving expected results. This can be addressed by employing various algorithms and methods to control each DER within the VPP. However, using different algorithms to control each element in the VPP can negatively impact other resources, potentially leading to undesirable outcomes. To overcome these challenges, it is essential to ensure that the control system incorporates various elements and capabilities of DER’s and allows for interaction with the power grid.
.​
Second. Data security is also one of the biggest challenges in virtual power plants, as large amounts of data are exchanged between different devices and platforms, relying on internet connectivity. Some of the key challenges related to data security in Virtual Power Plants include increased vulnerability, as the large volume of data exchanged between various devices and platforms heightens susceptibility to various security threats, such as hacking, malware attacks, or unauthorized data access. Data security may be compromised if the infrastructure or system is unavailable, which can lead to data loss or disruptions in energy supply. Virtual power Plants utilize data on energy consumption and other information gathered from diverse sources, which may pose a risk to data privacy. Finally, it is important to note that managing data security in Virtual Power Plants can be challenging due to the complexity of the systems, the variety of technologies and protocols, and the fact that data is collected and processed in real-time.
The implementation of virtual power plants faces many obstacles and challenges. It is necessary to establish an appropriate regulatory framework, legal conditions, and market support to ensure their long-term sustainability. Advanced technologies for monitoring, management, and communication within virtual power plants also need to be developed.
A new era is here, and we must embrace Virtual Power Plants
Virtual power plants represent a new and innovative concept in the energy sector, enabling the connection and management of a large number of decentralized energy sources. Their implementation achieves greater flexibility, efficiency, and sustainability in electricity production and management. One of the advantages of virtual power plants is their ability to integrate various types of renewable energy sources such as solar panels, wind turbines, biomass, etc. This integration allows better utilization of available resources, reduces greenhouse gas emissions, and decreases dependence on traditional fossil fuels.
The introduction of Virtual Power Plants has a significant impact on the energy system. They contribute to decentralizing energy production, reducing the need for large centralized power plants. This results in greater security and resilience of the energy system, as the risk of failures or interruptions is reduced. Additionally, Virtual Power Plants provide the opportunity to participate in the electricity market. Due to their flexibility, they can adapt to market demands and provide various services such as load balancing, participation in energy reserves, and electricity trading. This opens up new business models and opportunities for integrated energy systems.
However, the implementation of Virtual Power Plants faces many obstacles and challenges. It is necessary to establish an appropriate regulatory framework, legal conditions, and market support to ensure their long-term sustainability. Advanced technologies for monitoring, management, and communication within virtual power plants also need to be developed.
To sum up, Virtual Power Plants have a positive impact on the energy system by providing a sustainable and flexible alternative to traditional energy production methods. Their implementation can contribute to achieving energy goals, reducing greenhouse gas emissions, and creating a more sustainable energy sector.
bottom of page