Knowledge Center

Virtual Power Plant (VPP) Concept

Posted on Author GaMDER

Huge numbers of DERs can be coordinated together to form a Virtual Power Plant (VPP).  One of the most common areas of use for VPPs is supply/demand balancing with centralized price or control commands. In addition, local bottle-necks can be relieved by zonal control. Furthermore, use of distributed generation from renewables and self-consumption can be improved, by managing DERs according to the output of local generators.
Moreover, VPPs may be useful for load balancing in the cases of planned maintenances and unexpected failures on the grid.

Note: This content is related to a scientific publication. For citing in your studies, please refer to:

M. A. Zehir and M. Bagriyanik, “Smart energy aggregation network (SEAN): An advanced management system for using distributed energy resources in virtual power plant applications,” 2015 3rd International Istanbul Smart Grid Congress and Fair (ICSG), Istanbul, 2015, pp. 1-4.
doi: 10.1109/SGCF.2015.7354930

Virtual Power Plants have several advantages compared to conventional power plants.

    • Faster response for supply/demand balancing
    • High performance even in the cases of local power system problems
    • Reduction of line losses and voltage drop
    • More efficient use of  existing transmission line capacity
    • Availability of establishment in shorter time with less investment

However, they also have some drawbacks (with possible solutions):

  • Remote communication and control infrastructure (advanced control)
  • Varying capacity because of DERs primary tasks and volunteer-based participation (aggregation of huge numbers of DERs)
  • Shorter service time in the case of an event (real-time coordination)

In order to overcome these challenges and establish reliable VPPs, huge number of DERs should be coordinated, considering their limitations and dynamic changes in aggregated operation.

For the details of a VPP approach please read:

  • M. A. Zehir and M. Bagriyanik, “Smart energy aggregation network (SEAN): An advanced management system for using distributed energy resources in virtual power plant applications,” 2015 3rd International Istanbul Smart Grid Congress and Fair (ICSG), Istanbul, 2015, pp. 1-4.
    doi: 10.1109/SGCF.2015.7354930