2017 7th International Conference on Power Systems (ICPS)

College of Engineering Pune, India. Dec 21-23, 2017

Modeling and Simulation of Virtual Power Plant in

Energy Management System Applications
Naina P M∗ , Haile-Selassie Rajamani† and K. S. Swarup∗
∗ Department
of Electrical Engineering,
Indian Institute of Technology - Madras, Chennai, India - 600036
Email:ee15d024@ee.iitm.ac.in, swarup@ee.iitm.ac.in
† Faculty of Engineering and Information Sciences

University of Wollongong Dubai, Dubai, UAE

Email: HaileRajamani@uowdubai.ac.ae

Abstract—The high penetration of renewable resources in the

existing grid, increases the complexities of the grid. Nowadays,
the integration of renewable resources became a big issue. These
resources cannot participate in electricity markets because of
their smaller size. The concept of virtual power plant (VPP) can
enable the market participation of small generating units. The
VPP can also provide ancillary services like frequency support,
reactive power support. This paper explains the VPP concept, the
structure of VPP and also the market participation. An Energy
Management algorithm for VPP is also explained. A small VPP
model, consists of two distributed generation (DG) sources and
two controllable loads, is demonstrated in MATLAB-SIMULINK.
In addition, the current situation of the VPP, and identifies and
proposes the future research lines.
Index Terms—Virtual power plant, Microgrid, Distributed
generation. Fig. 1. Overview of VPP

I. I NTRODUCTION
The increased interest of renewable energy sources increases
the scope of generation nearer to the consumer. This scenario
will make considerable changes in power industry. In near
future, a major portion of the power will be gained from
distributed generation (DG). The introduction of DG into
traditional distribution networks increases the challenges in the
distribution networks. The main idea of DG is production of
energy nearer to the customers. It may include generation from
renewable energy sources (RES) like solar, wind, biomass and
biogas and also from cogeneration units. Different approaches
for DG are active distribution network (ADN), Microgrids,
virtual utilities, and virtual power plants (VPPs).
II. V IRTUAL P OWER P LANT C ONCEPT
The virtual power plant (VPP), a decentralized energy
management system, is a new concept. It aggregates small
generating units and controllable loads. According to Fenix
project, the VPP is defined as: A VPP aggregates the ca-
pacity of many diverse Distributed Energy Resources(DERs),
it creates a single operating profile from a composite of the
parameters characterizing each DERs and can incorporate the
impact of the network on aggregate DERs output. A VPP
is a flexible representation of a portfolio of DERs that can
be used to make contracts in the wholesale market and to
offer services to the system operator [1]. It is same as an
autonomous microgrid. A microgrid can be represented by a
single generator with a load. But, VPP is a single generator.
Fig. 1 shows a general overview of VPP. VPP can act
as a single power plant. Hence, it has its own operating
characteristics such as scheduled output, ramp rates, gen-
eration limits, operating cost, voltage regulation capability,
and reserve and so on. VPP also incorporates controllable
demands, parameters such as demand price elasticity and load
recovery patterns as characteristics. It may contain sources
like photovoltaic, wind power, small hydro stations, biomass
and biogas and combined heat and power generators. VPP
is a good solution for controlling RES. When RES alone is
connected to power networks, it might have some problems
like lack of transmission capacity in the power network and
variability of power output due to the variations of their
primary energy sources. VPP may also contain small non
renewable sources, controllable loads and energy storage. The
VPP function is explained in two configurations.
The technical VPP (TVPP) and commercial VPP (CVPP)
are the two different configurations of VPP. CVPP enables the
VPP to participate in energy markets. The TVPP can perform
CVPPs function and also provide balancing and ancillary
services [2]. The energy management system (EMS) is the
heart of the VPP. EMS collects all the data from the generating
units, controllable loads and storage, connected to the VPP.

978-1-5386-1789-2/17/$31.00 ©2017 IEEE 392

 start
Load
hourly data
Calculate the total
demand (D) and
total generation (G)
Discharging
Find Es (t) No Yes
D< G ?
Es (t) > Es (t) <
Yes Esmin (t)? Esmax (t)?
Find out the
load which can
No No
be controllable
end
Fig. 2. EMS algorithm for VPP
EMS performs some forecasting algorithms to provide bids in
the market. According to the available data, EMS send control
signals to the elements in the VPP.
An algorithm for EMS is shown in Fig. 2. It is a centralized
controller. It collects the demand and generation capacity
data from all the elements in VPP and also gets the grid
requirement. It will oprate in three modes: No Power Exchange
mode, Grid Export mode and Grid Import mode. In No Power
Exchange mode, there is no power exchange between grid
and VPP. In Grid Export mode, the excess power generated
in VPP is fed back to the grid. If there is deficiency in
power to supply grid requirement, then this situation will
overcome by curtailing the controllable loads or with the help
of energystorage. In Grid Import mode, the power deficiency
in VPP is supplied from grid. The Grid Export mode can be
adjusted to operate in peak hours and also Grid Import mode
in off-peak hours.
III. E CONOMIC A NALYSIS
Nowadays the number of prosumers is increasing, i.e. the
number of small generating units is increasing. There should
be some minimum generation is required to participate in
electricity markets. So they cant participate in the markets.
Hence the concept of VPP has introduced. Since VPP ag-
gregates the capacities of small generating units, they can
participate in electricity markets. Bidding strategies are one of
the important issues for a market participant. A bid contains
information on how much power, at which price, in which area,
and at what time a market participant is willing to sell/buy.
There are two different models are available for bidding
strategies: Equilibrium model and non equilibrium model. A
Nash-Supply Function Equilibrium model for bidding strategy
of VPP is given in [3]. The equilibrium models are not suitable
since they are not considering minimum on/off time, ramp
limits and start up and shut down costs. The bidding problem
is basically a unit commitment (UC) problem.
A non-equilibrium bidding model, for a joint market of
energy and spinning reserve as service, based on the deter-
ministic price-based unit commitment (PBUC) which takes the
supply-demand balancing constraint and security constraints
of VPP itself into account has been proposed in [4]. This
Charging model gives a single operating profile from a composite of
Find Es (t) the parameters characterizing each of the elements of VPP.
The uncertainties in price are not considered. A probabilistic
PBUC based bidding strategy for day-ahead market has been
Yes proposed in [5], [6]. The bidding problem is explained in two
stages. In first stage, mixed integer non linear programming
(MINLP) is used for solving probabilistic PBUC. The uncer-
tainties are included using point estimate method. The network
constraints are included in the second stage. An arbitrage
strategy of VPP in energy, spinning reserve and reactive
power market is proposed [7]. A joint market of energy and
spinning reserve service, coupled with reactive power market
is considered. VPP can participate in both day- ahead and
balancing markets [8]. Inelastic load of consumer can also
include in VPP along with Renewable sources. A two stage
stochastic MILP model of VPP, containing a wind power plant
(WPP), a pumped hydro storage plant and a central power
plant, for day ahead and balancing markets is given in [9].
A robust optimization approach is proposed [10], for a VPP,
containing price responsive demands, a WPP and a storage
facility, in day-ahead and real time markets.
An interactive dispatch model for multi VPPs is introduced
using demand response and game theory [11]. A multi-
objective optimization model for VPP is proposed [12], con-
sidering the uncertainties and Demand Response (DR). A
stochastic chance-constrained method is introduced to over-
come the uncertainties of the DR, WPP, PV and Electric
vehicle Group (EVG). A distributed optimal dispatch method
based on the distributed primal-dual sub-gradient algorithm
to maximize the profit of VPP has been proposed [13]. This
is achieved by coordinating individual decision making of
distributed energy resources (DERs) in the VPP via limited
communication.
IV. M ODELING AND S IMULATION OF VPP
A simple VPP model is simulated using Matlab-Simulink.
The schematic diagram of the main grid and VPP is shown
in Fig 3 [14].The VPP is connected to a radial distribution
system. The virtual power plant consists of two distributed
generation units and two dynamic loads. The heart of the VPP
is the control center (CC). The control signals are represented
by the cyan lines. The CC operates using the EMS the algo-
rithm given in Fig. 2. The components of the model mainly
divided into three: Main grid model, Distribution generation
model and the Dynamic load model.
393
 DG1 VPP
LV line
MV line MV line 20kV/400V LV line 100m
0.5 km 5 km 400m L1
CC
L2
Grid
20kV
1200kW 400kW 800kW 10kW
DG2

Fig. 3. The schematic diagram of VPP and the main grid

(a) Total load and generation of VPP (b) Power supplied to grid from VPP
Fig. 4. Simulation results of Case 1.

A. Main grid model 8 kW + 200 customers @ 2 kW). A 10 kW fixed load is

The main grid model consists of a three phase ac block, connected to distribution line.
medium transmission line and distribution line, a step down B. Distribution generation model
transformer and fixed resistive loads. All the blocks are
The distribution generation model consists of a synchronous
available in Simulink library. The three phase ac block with
machine, a hydraulic turbine governor and an excitation
internal RL impedance is used to represent a stiff grid. The
model. We have selected 31.3kVA, 400V, 50Hz, 1500rpm
base voltage is 20kVV rmsL−L and frequency is 50Hz. Three
synchronous generator. Both the generators have the same
phase parallel RLC block is used to represent the lines. There
characteristics. The distribution generators are marked as DG1
are two voltage level lines: 20 kV and 400 V lines. The line
and DG2 in Fig 3. The maximum active power output from
parameters are given in Table I.
each generator is assumed to be 30kW. The synchronous
machine can be replaced by renewable sources.
TABLE I
L INE PARAMETERS C. Dynamic load model
Sl. No Type Distance X (Ω/km) R (Ω/km) C (nF/km) A three phase dynamic load module with active and reactive
1 MV Line 0.5 km 0.1226 0.156 235
2 MV Line 5 km 0.3614 0.2426 10.12
power controlled by external input signal is used.The loads are
3 LV Line 400 m 0.302 0.437 10.2 marked as L1 and L2 in Fig 3. The maximum demand for each
4 LV Line 100 m 0.302 0.437 10.2 load is fixed to 31.3 kW. The dynamic load can be modeled
as domestic loads.
A three phase transformer block is used to represent the step
down transformer. The nominal power rating of transformer D. Simulation Results
is 250 kVA and frequency is 50 Hz. The primary side The DG output power and dynamic load can be controlled.
voltage and secondary side voltage are 20 kV and 400 V The control signals for DGs and controllable loads are gen-
respectively. There are some fixed loads connected to the MV erated in the control center. The control center collects the
line, represents industrial load 1200 kW, trade 400 kW (100 data from the dynamic loads and generators and also consider
customers @ 4 kW), house hold 800 kW (50 customers @ the grid requirement, generates the control signal for DGs

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 (a) Total load and generation of VPP (b) Power supplied to grid from VPP
Fig. 5. Simulation results of Case 2.

and controllable loads. In this paper, three different cases are TABLE III
analysed to understand the performance of VPP. VPP OPERATION MODES IN C ASE 2
1) Case 1: In this case, the generation is assumed to Duration VPP operation Power Power Exchange
be constant. The dynamic load values are changing. The mode generated in with grid
simulation is done for 100 s and the results are shown in Fig. VPP
0 - 15s No Power Ex- (Total load + No power
4. The VPP operates in No Power Exchange mode for the first change Mode losses) within exchange with
25 seconds. The VPP will supply the load demand and losses VPP grid
within the VPP. Then the VPP works in Grid Export mode 15s - Grid Export (Total load + A constant power
50s Mode losses) in VPP + 2000 W is sup-
for the duration 25 seconds to 75s. During this period VPP 2000 W plied to grid
exports power to grid. VPP operates in Grid Import mode for
the last 25 s. The deficit power is imported from the grid. The
power flow from and to the grid is shown in Fig. 4b. The VPP supplies a constant load of 2000 W to th grid for
the last 35 s of simulation. That is VPP is in Grid Export
TABLE II mode. During the last 15 s, the VPP is not able to supply the
VPP OPERATION MODES IN C ASE 1
grid requirement. Hence a portion of controllable loads are
Duration VPP operation Power Power Exchange curtailed and supplies the grid. The power exchange between
mode generated in with grid
VPP
grid and VPP is shown in Fig 6b.
0 - 25s No Power Ex- (Total load + No power
change Mode losses) within exchange with TABLE IV
VPP grid VPP OPERATION MODES IN C ASE 3
25s - Grid Export (Total load + Power supplied
75s Mode losses) in VPP + to grid Duration VPP operation Power Power Exchange
Power supplied mode generated in with grid
to grid VPP
75s - Power Import (Total load + Power supplied 0 - 15s No Power Ex- (Total load + No power
100s mode losses) in VPP - from grid change Mode losses) within exchange with
Power supplied VPP grid
from grid 15s - Grid Export (Total load + A constant power
35s Mode losses) in VPP + 2000 W is sup-
2) Case 2: The generator output is controlled to supply 2000 W plied to grid
the load in the system. The maximum generation capacity is 35s - Grid Export (load + losses) in A portion of load
50s Mode VPP + 2000 W is curtailed to
assumed to be 30kW. The Fig. 5a shows the generator output supply a constant
and the load demand within VPP. The VPP operates in No power 2000 W
Power Exchange mode for first 15 s. The VPP generates the to grid
total load demand and losses within the VPP and supplies
a constant power of 2000 W to the grid for the rest of the
V. A PPLICATIONS OF VPP
simulation. That is VPP operates in Grid Export mode. The
power exchange between grid and VPP is shown in Fig. 5b. The main application of VPP is market participation of DGs.
3) Case 3: In this case, both the load and generation in An operational model for VPP based on linear programming,
VPP is controlled by CC. The Fig. 6a shows the generator is shown in [15]. In this study, they have analyzed that how
output, load supplied and the actual load requirement of VPP. the supply to the Grid and storage in the EV batteries can

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 (a) Total load and generation of VPP
Fig. 6. Simulation results of Case 3.
be scheduled to increase the profit of the VPP, while also
paying for the storage using a novel scheme. A direct load
control algorithm based on linear programming for VPP has
been proposed in [16]. This algorithm is used to obtain load
reduction for a control period. From literature, the frequency
support can be provided by VPP.
VI. F UTURE R ESEARCH A REAS
The VPP is a very attractive concept and different projects
about VPPs have been developed all over the world. The
concept of VPP is introduced and demonstrated in a project
FENIX in 2007. According to Pike Research, ”Virtual power
plants represent an Internet of Energy. The examples of real
world VPPs are available in Netherlands, Scotland, Australia
etc. Related to the subject of further developments, the VPP
leave some open research areas. The Bidding strategies have
to be included all the uncertainty elements of sources and
storage and also the network structure. The VPP can be used
to provide ancillary services like frequency support, reactive
power support etc. More research has to be done in this area.
The reliability has an important role in this area. Since all the
data are saved in servers and communicated through internet
Cyber security plays an important role in VPP.
VII. C ONCLUSION
The Distributed Generation can reduce the transmission
losses and the electricity scarcity. VPP is a good solution
to participate the distribution generators in the electricity
market. The concept of VPP is introduced in order to help
the DG to participate in the markets. The bidding strategies
and scheduling is more important in markets. Different models
for VPP and its applications, from literature, are discussed. A
simple VPP model, with two sources and two controllable
loads, connected to a radial distribution system, is modeled.
The EMS algorithm helps the VPP to operate in different
modes. The VPP operation is explained in three cases.
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(b) Power supplied to grid from VPP
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