VIRTUAL POWER PLANT

PRESENTED BY-

SHILPA SINGH CHAUHAN

ROLL NO- 2200521685008

INSTITUTE OF ENGINEERING&TECHNOLOGY
 CONTENT
• Issues and Challenges in the present Power System Scenario.
• What is a Virtual Power Plant?
• Benefits of VPP in the current Power System Scenario.
• Applications of VPP in Power System.
• Components of a VPP System.
• Energy Management System (EMS).
• Objectives of EMS.
• Framework of VPP operation.
• Bidding strategies in VPP.
• Comparison of conventional power plant (CPP) with VPP.
• Optimization operations in VPP.
• Objectives in VPP optimization,
• Future prospects of VPP in Power Systems.
Issues and Challenges in the present Power System
Scenario
o Most of the Distributed Energy Resources (DERS) like wind turbine (WT), photovoltaic (PV),
and hydroelectric power (HP) are generally deployed far away from the load operation centres,
requiring long-range inter-state transmission of electricity
o The uncertain nature of Renewable Energy Resources( RESS) from forecast and prediction
difficulties results in power imbalance and deviation of frequency in the grid power systems.
o There is instability in the power flow in Distribution Networks (DNs) caused by the integration
of DERS in the consumer side escalating the predictableness of demand load.
o The high integration of Distributed Generations (DGs) to the distribution sector, injection of
excess local power to the grid by some consumers, and Electric Vehicle (EV) integration make
the standard methods of centralized control difficult to handle the power flow variation.
o The PV and wind-based DGs are not viable to participate easily in the market-based
restructured power system due to their smaller size, intermittent uncertainties, and stochastic
characteristics
What is a Virtual Power Plant?
• A Virtual Power Plant (VPP) in a broad way is defined and characterized as a virtual aggregation
of decentralized, medium-scale power generating units as well as flexible power consumers and
storage systems to operate flexibly and in a coordinated way.
• The major characteristics of VPP are information gathering and processing, geographical influence
ignorance, and dynamic operation and optimization.
Benefits of VPP in the current Power System Scenario
o The ability to deliver peak load electricity or load-following under adverse conditions.
o Added value to the utilization of energy to meet the demand without investment in new generation
plants.
o Can coordinate previously uncoordinated traditional and non-traditional generation sources to the
newly integrated DER and storage devices.
o Access new electricity markets without owning large plants.
o Enhanced system reliability and cost efficiencies with better energy management.
o Help in making the transition from large, centralized power plants to smaller, smarter, and more
Sustainable DERS located at customer sites.
o Enhance independent generator capacity particularly in the period of peak loads
o Using market prices, the control system can create optimized price schedules for the consumption of
electricity when it is cheap and demands low.
o The VPP integration brings an efficient, reliable, and safe system by managing internal DERS and
controllable loads together.
 Applications of VPP in Power System
• Monitoring and data management of power portfolios from individual plants
integrated with many resources.
• The direct access to market using various DERS, conventional sources, storage
systems, and flexible loads.
• Demand-side management (DSM) methods and solutions can be implemented with
flexible electricity consumers for active load management.
• Demand response can be employed to use the dynamic electricity prices.
• Frame a centralized control for grid operators to monitor and control wind and
solar parks remotely.
Components of a VPP System

The main structure of a VPP unit comprises the following components:

• Distributed Energy Resources (DERS)
• Energy Storage Systems (FSSS)
• Information and Communication Technology (ICT) devices.
Distributed Energy Resources (DER)

Based on their dispatch capability and their source of generation type, they are categorized into:
• Renewable energy sources (RES)
• Photovoltaics
• Hydropower Plants
• Wind Turbines
• Conventional energy sources
• Combined Heat and Power (CHP)
• Fuel-based DERS: Diesel generators, biomass, and fuel cells
Energy Storage Systems (ESSs)
It is a new mechanism to adapt to load demand variations mostly as energy buffers during high
availability of non-dispatchable generation sources, storing extra available off-peak period generated
energy and dispatching it during peak periods.
According to their applications, they are classified according to ESS concerned with the energy
supply as
✓ Compressed Air Energy Storage (CAES)
 Hydraulic Pumped Energy Storage (HPES)
Similarly, according to the ESS concerned with the power supply as
✓ Super Capacitor Energy Storage (SCES)
 Superconductor Magnetic Energy Storage (SMES)
 Flywheel Energy Storage (FWES).
Information and Communication Technology (ICT)

The main component of a VPP system enabling information and data transfer in a bi-directional way
which is facilitated by the Energy Management System (EMS), as the central hub of ICT.
Involves together various information transfer and relaying systems.
Other main components of the ICT are:
o Remote Terminal Units (RTUS)
o Intelligent Electronic Devices (IEDs)
o Distribution Dispatch Centre (DDC)
o Supervisory Control and Data Acquisition (SCADA).
Energy Management System (EMS)

For effective functioning of the VPP system, the EMS is assigned with the following tasks:
• Management of the current status and the deployment of individual VPP components
• Assessment of the output power of RES primary sources Management and prediction of loads.
• Power flow coordination among the constituent VPP subunits
• Scheduling of DG operation, ESS, and controllable loads.
Objectives of EMS

The primary objective of EMS is involved with the following objectives:

- Minimization of losses
- Minimization of environmental pollution.
- Minimization of energy production costs
- Maximization of profitability
- Voltage profile improvement·
- Power quality enhancement
Framework of VPP operation
o VPP controls the supply and integrates different DERS into a clustered, interconnected I operating
system. This enables the VPP to actively participate in electricity markets by offering ancillary and
power quality-oriented services in conjunction with operation as a single distribution network.
o Based on the DER and ESS characteristics and their operational features, VPPs are classified into
two separate parts:
 Commercial VPP (CVPP)
 Technical VPP (TVPP)
Bidding strategies in VPP
The bidding strategies offered by a VPP to participate in electricity regulatory markets can be
oriented towards the fulfilment of various objectives and strategies.
VPP can act as a price coordination mechanism but itself has no effect on market exchange rates due
to its price taker role.
Based on time dimensions, this market-centric operation mechanism contains three stages:
• Day-ahead Market
• Real-time Market
• Balancing Market
Comparison of conventional power plant (CPP) with VPP
CPP
o An aggregation of thermal power generation
units giving out stable and controlled output
with support for peak load shaving and
frequency regulation
o Usually confined in geographical locations
following fossil fuel distribution.
o The installed capacities and number of units
are usually fixed.
o Good control performance but a relatively
slow rate of regulation
VPP
o Functions as a single dispatchable unit in a
power system and a single trading unit in
wholesale electricity markets.
o Comprise of various distant RES units over a
large geographical area.
o More accommodating in terms of expansion of
capacity by the aggregation of more DERs.
o More flexible regulation rate and faster
response Times
Optimization operations in VPP
• The VPPs employ several optimization strategies for smooth operation among the DERS and
customers. Various optimization techniques, strategies, algorithms are available in the literature
and can be applied in different scenarios.
Objectives in VPP optimization
• VPP aggregates DERS, ESSs, and controllable loads based on specific objective functions to allow
for optimal operation. The main focus of objective functions is to maximize the profitability of the
system and reduction of costs.
Future prospects of VPP in Power Systems
• Innovative structure and topology of VPP can accompany the change of distribution system and its
components.
• Diversified and hybrid optimization techniques are being explored further for internal energy
dispatch, external market participation, risk evaluation, information and strategy coordination, and
bidding strategy.
• Further penetration of EVs in the future timeframe presents greater possibilities for them to be
used as energy reserves supplying bi-directional power flow and acting as redundancy systems in
case of failure of generation or shortfalls during peak periods.
• Faster data transmission protocols in the case of ICT can be implemented to allow for
instantaneous scheduling, dispatch, and logging activities at various levels in the VPP hierarchy.
THANK YOU