Optimal Cost Management of Distributed Generation Units and Microgrids for Virtual Power Plant Scheduling

Abstract

Virtual power plant (VPP) interconnects distributed generation (DG) units, microgrids, and energy storage systems (ESSs) of an electrical power system. This article presents a linear programming cost minimization model of VPP for the design and commitments of DG, ESS, and microgrid. Using a set of renewable energy resources, the proposed model creates a reliable, cost-effective, and environmentally friendly distribution system. Accurately, it illustrates the schedule of the VPP to operate autonomously. The proposed model is applied to a set of United States commercial load profiles to determine the investment benefit of implementing DGs in the power system. Analysis of results concerning variation in energy price illustrates feasible solutions. VPP decision-makers can select the best reasonable solution based on their specific project budget for feature electricity generation. Moreover, results show the need for the proposed method in VPP decision making.