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Comprehensive review on structure and operation of virtual power plant in electrical system

Constrained by low capacity and volatility, the rapid growth of distributed energy resources are obviously slowdown resulting in consumption difficulty and investment obstacle. As an effective integration and management technology, virtual power plant (VPP) becomes a suitable cornerstone of renewable energy future development. Based on current scientific research, this study intends to provide a detailed review of VPP from an internal perspective (e.g. energy resources' integration and operation) to the external aspect including participation in electricity market. In accordance with market diversity, different bidding strategy optimisation problems of VPP are formulated and their corresponding mathematical solution methods are literately reviewed. To extract characteristics of VPP, a comparison between energy management techniques (e.g. VPP, microgrid, active distribution network, and load aggregator) is conducted, where advantages and defects of VPP are also concluded. Meanwhile, realistic deployments of VPP in European electricity markets are elaborated to verify its feasibility and applicability. To better accommodate future development of renewable energy, a flexible structure and effective management mechanism of VPP should be built leading to its technical innovation and management reform. Possessed with the threefold development orientation, VPP will undoubtedly improve the utilisation and management of renewable energy sources as a coordinated and operational entity.