Integration of Distributed Energy Resources with Virtual Power Plants--Technical, Regulatory and Socio-economic Considerations (original) (raw)
Currently, a significant level of distributed energy resources (DER) necessitates excessive investments in the passive distribution networks where expansions and reinforcements must take place to integrate these devices. With the increase of DER worldwide, network operators were challenged to incorporate these devices in the power system in an efficient and cost-effective manner. However, in many liberalized electricity markets, the network operator was not allowed to dispatch and manage the DER devices according to the unbundling regulations. With the ability to control and manage the contributions of DER, the virtual power plant (VPP) offered an outcome as it can be developed by an independent party. Furthermore, it facilitated the trade of electric contributions of the DER owners as well as the dispatching of power and energy from the central power plants to the increasing DER. In addition to preventing the excessive expenditures that are needed for network expansions and reinforcements, the VPP anticipated challenges regarding the network efficiency by enabling the transition towards active distribution networks. In this context, the VPP offered a concept for a DER control system that responds to the regulatory and socio-economic constraints besides the technical challenges. This paper discusses the implications related to integration of DER and the development of VPPs while taking the current situation and practices in the Netherlands as example.
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