Virtual power plant: state of the art providing energy flexibility to local distribution grids

Abstract

Integrating decentralised energy sources into the traditional distribution networks can result in technical issues impacting the power quality. Innovative ideas are, therefore, needed to promote the transformation of systems to a smart grid. Distribution System operator (DSO) could make use of the flexibility of emerging technologies as a method to address these power quality issues. This study aims to present an overview of a local flexibility market (LFM) which will allow DSO requirements to be fulfilled through the (VPP) as an energy flexibility provider. The required optimization loads, generators and as well as storage units, are undertaken in the general algebraic modeling simulation (GAMS) environment. The aim of the optimization problem is to provide DSOs the opportunity to increase or curtail the local generations and loads in order to satisfy their requirement. The VPP will then be responsible for handling the relevant requests in real time to ensure the correct operating schedule of a resource is applied. The preliminary results of simulation studies presented in this paper have shown that the local market framework for flexibility could have potential for deferring investments in distribution network capacity, minimizing energy costs and improving the hosting capacity of distribution networks.