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Wind and Solar Power Integration in Electricity Markets and Distribution Networks Through Service-centric Virtual Power Plants

A virtual power plant (VPP) is formulated and developed as a service-centric aggregator that enables the market integration of distributed energy resources and simultaneously supports cooperation with the distribution system operator (DSO) in addressing the issue of network usage. A suitable schedule of interactions and communications between aggregators, market operators, system operators, generators, and consumers, regarding electricity market participation and network operation is proposed and presented in a sequence diagram. The cooperation on congestion management in the distribution network is highlighted as solution to relieve network constraints via the optimal adjustment of active and reactive power of VPP resources while maximizing renewable energy integration across the pool under management. The VPP reduces uncertainty affiliated with input data by employing the latest forecasts through a rolling horizon approach in the planning stage. Thanks to the flexibility of the VPP to perform rescheduling in accordance with agreements it negotiated with its resources, it becomes possible to refrain from undesirable curtailments. Both the market-integrative and the service-centric roles of the VPP are verified through modeling and simulation with a benchmark European distribution network. The results confirm the added value of the proposed VPP in enhancing the integration of wind and solar power.