Evolution and role of virtual power plants: Market strategy with integration of renewable based microgrids

Abstract

The use of distributed energy resources (DER) programs, which include separate renewable energy (RE) programs, has expanded in residential as well as commercial structures as an outcome of recent technological developments. The virtual power plant (VPP) may improve the security and reliability of an electricity grid's operations through including energy storage, changeable loads, and distributed energy resources (DER), among other characteristics. Consequently, a growing number of scholars tend to focus on VPP and providing recommendations for its improvement. In order to facilitate the incorporation of distributed generation into electricity distribution systems, cutting-edge management ideas for facilities have emerged in the last few years. As a result, it is now more crucial than ever to improve management abilities for the combining of dispersed energy output and consumption using various virtual power plants (VPPs). To increase operational profits, it's crucial to make use of their capacity to play a role in power markets. This work provides a classification scheme for, and an in-depth analysis of, recent studies that provide VPP models featuring interactions with various forms of electricity markets. The objective of this article is to find out which VPP strategy will yield the greatest possible return in each legislative scenario. These consist of the model's design, strategies for resolving complex mathematical problems, involvement in various marketplaces, and the application of the suggested models to real-world case studies. The research has been evaluated, and it has been concluded that contemporary models are more comprehensive and realistic. This article additionally elaborates on and emphasizes the VPP concept from other researchers' findings. Moreover, a number of prevalent VPP projects from throughout the globe are included. The VPP research also addresses some potential challenges and recommendations for prospective growth.

Keywords

• Virtual power plant
• Distributed energy resources
• Energy management
• Bidding strategy
• Optimization approaches
• Electricity market participation