Economic analysis of a data center virtual power plant participating in demand response

Abstract

Data centers represent a large load for the grid, and the number of data centers are increasing at a high rate. The transmission network in the grid is becoming congested as a result of the load growth. Data centers have underutilized energy resources, such as backup generators and battery storage, which can be used for demand response (DR) to benefit both the electric power system and the data center. Therefore, in this paper, data center energy resources, including renewable energy, are aggregated and controlled using an energy management system (EMS) to operate as a virtual power plant (VPP). The data center as a VPP participates in a day-ahead DR program to relieve network congestion and improve market efficiency. A case study is conducted in which the data center is connected to bus 8 of the modified IEEE 30-bus test system to evaluate the potential economic savings by participating in the DR program, coordinated by the Independent System Operator (ISO). We show that the savings of the data center operating as a VPP and participating in the DR program far outweighs the expense due to operating its own generators.