Analysis of the Implementation of Virtual Power Plants and Their Impacts on Electrical Systems

Abstract

The increasing penetration of Distributed Energy Resources (DERs) in Distribution Systems (DSs) has motivated studies on Virtual Power Plants (VPPs). However, few studies have jointly assessed the sizing and economic attractiveness of VPPs from the entrepreneur’s perspective and the potential benefits and impacts on power systems while maintaining the scope to DSs. This study proposes a methodology for sizing VPPs and simulating their economic optimal dispatch and economic attractiveness with a focus on the entrepreneur’s viewpoint. In addition, it also evaluates VPPs’ potential benefits and impacts on a DS or Transmission System (TS) while considering the interface between the Distribution System Operator (DSO) and the Transmission System Operator (TSO). The methodology employs optimization to minimize the Net Present Cost (NPC) of the project, in relation to sizing the DERs, and to obtain the economic optimal dispatch of the BESSs that comprise the VPP. Moreover, a power flow analysis and probabilistic reliability assessment are used to evaluate the benefits and impacts on the power system. The methodology was applied to a case study involving Photovoltaic (PV) systems and Battery Energy Storage Systems (BESSs) used by aggregated medium voltage consumers, which configure Technical Virtual Power Plants (TVPPs) participating in Demand Response (DR) via incentives, with a network model of the Brazilian National Interconnected System (SIN) adapted from the 2030 Ten-Year Energy Expansion Plan (PDE) of the Energy Research Office (EPE), along with data from the Geographic Database of the Distribution Utility (BDGD). The results indicate the economic attractiveness of DERs according to the premises adopted and indicate improvements in TS reliability indexes with the possibility of TVPPs’ dispatch after transmission contingencies.