Modeling of VPPs for their Optimal Operation and Configuration

A. Ortega, O. Oladimeji, H. Nemati, L. Sigrist, P. Sánchez, L. Rouco, E. Lobato, M. Biencinto, I. López

Summary:

This Deliverable, which is the major output of Task T5.1, proposes a novel Dynamic Virtual Power Plant (DVPP) planning model, that is composed, exclusively, by Renewable Energy Sources (including hydro, wind, solar PV, solar thermal and biomass), and flexible demands. The model considers the optimal configuration and operation of the DVPP for different business cases. The goal is to demonstrate that, by appropriately combining the features and efforts from RESs of different nature that are currently installed and operating in a power system, one can achieve higher economical and operational benefits than other solutions that imply the installation of large electrochemical (battery) energy storage systems (BESSs). 
The DVPP model proposed in this document is the first stone that will pave the way towards a tool that is being developed in this WP that will provide system operators, aggregators, retailers and consumers with the instruments to operate RESs in a viable, competitive and reliable way. 
To this aim, the DVPP optimization model includes features to account for the different characteristics of the DVPP itself, the electrical network to which it is connected, and the market mechanisms that can help the DVPP become economically efficient. Such characteristics include: i) the electrical network in the form of, e.g., nodal power balances and line active power flow limits; (ii) the DVPP components, such as generating units, demands, and RES-based storage units (pumped-hydro, solar thermal); (iii) the markets in which the DVPP may participate, such as energy markets and ancillary service markets; and (iv) the uncertainties that characterize several parameters of the model, such as stochastic energy sources (wind and sun), market prices, and demand behavior. 
Different business models for the DVPP have been identified in the form of the electric energy and power markets that can be suitable for its participation. Among all market schemes currently implemented across Europe, the most relevant from the DVPP perspective are the day-ahead and intra-day markets from the energy perspective, and the secondary reserve market from the power (ancillary service) perspective. With this in mind, the DVPP manager could select the appropriate objective functions within the proposed model presented so that the DVPP can participate in one or more of such markets. Other markets with some potential for the DVPP (mainly other ancillary service markets) have also been identified and described in this document.

IIT Project: H2020POSYTYF (H2020POSYTYF)

Funding entity: Comisión Europea. H2020

Publication date: 31-Dec-2021