Solar Commercial Virtual Power Plant (original) (raw)
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Physical and financial virtual power plants
Center for Economic Studies-Discussion papers, 2005
Abstract Antitrust authorities in Belgium, France and the Netherlands oblige dominant generators to sell Virtual Power Plants as way to mitigate market power. This paper analyzes the implementation details of such contracts, and distinguishes two types: financial VPPs, which are pure insurance contracts on the price for electricity, and physical VPPs, which are contracts for physical delivery of electricity. In an oligopoly setting both contracts have different effects on the strategic behavior of the players.
Modelling and assessing the impacts of self supply and market-revenue driven Virtual Power Plants
Electric Power Systems Research, 2015
a b s t r a c t Distributed generation will make up for more than half of the installed electric generation capacity in 2020 in Spain. The major part of this generation is renewable-energy based and intermittent. This provokes important challenges in the operation of the electric energy system: The number of generators increases, the size of generators decreases and more variability as well as uncertainty will exist in the operation of the electric system. To ensure a viable operation, an option which bears a high potential is the aggregation of many small generators as well as demands into one entity: a so-called Virtual Power Plant (VPP). This article will treat the techno-economic impact of the massive integration of small generators and demands into VPPs both on the system functioning and on the outcome of demands and generators within these VPPs. We will analyse and compare several strategies of VPPs.
BUSINESS MODELS FOR VIRTUAL POWER PLANTS AND THEIR IMPACT ON ECONOMIC OPERATION
CIRED 2023, 2023
Aggregation by Virtual Power Plants to provide flexibility to distribution and transmission networks is seen as an important element in the transition to Net-zero. This paper presents work carried out in the SIES 2022 ERA-Net project, which is investigating in detail the possible provision of flexibility by different technologies but thorough a lens of different business models. Thus, presented work relies on the real use cases and associated data. The focus of this work is on the value of different business models associated with a demonstrator plant in East Kilbride Scotland. Using an adapted business model structure with three strategic dimensions, along with a risk/reward portfolio framework, an illustrative case study is used to highlight the business model choices available to a small VPP owner.
The Virtual Power Plant – A Review Of Business Models
E3S Web of Conferences
The aim of the article is to present a critical comparison of different business models of Virtual Power Plant and pointing out both the common and the unique features for each model. Therefore, the American, German, Finnish, Danish and Australian VPP’s business models are described in the article. The VPP is an IT structure which integrates different types of distributed energy sources, flexible consumers and energy storage with each other and with other market segments in real time through a smart grid. The VPP gives positive effects on electricity grid like ensuring energy security, improving grid stability and reliability, optimization of energy resources use, lowering the load - demand response, regulation of frequency, using operational reserves, management of peak demand. The business model is perceived as a method of increasing and exploitation of company’s resources for preparing new products or services for customers in order to obtain added value (expanding the competitio...
A virtual power plant as a cooperation network
Marketing and Management of Innovations
The significant issue for Polish economy is to fulfil the requirements of the EU's climate and energy policies according to the share of renewable energy sources (RES) in total energy production by 2020 should be equal to 15%. At the end of 2016, the share of RES in total energy production in Poland was only 13.54%. The development of Virtual Power Plant (VPP) is the chance to complete the goal set for 2020 and to increase the development of RES. The VPP is an IT structure which integrates different types of distributed energy sources, flexible consumers and energy storage with each other and with other market segments in real time through a smart grid. The VPP has positive effects on the electricity grid, like the improving energy security as well as grid stability and reliability, optimizing energy resources use, lowering the load-demand response and giving the possibility to manage of electricity surplus in small dispersed energy sources. The main aim of the article is the proposal of a new business model for Virtual Power Plant in Polish conditions. The main aim is accomplished by secondary aims such as (i) describing the concept of virtual organizations, (ii) the review of business models and (iii) the presentation of the legal capabilities to create the virtual power plants. First of all, the literature studies made by authors, point out there is a lack of complex analysis related to the establishing the VPP and its business model. The complex analysis means the analysis consists of technical, legal, economic and ecological aspects. The literature review provides information about virtual organizations in the context of the virtual power plant. The VPP is one of the types of virtual organizations, but the definitions of a VPP are primarily focused on its technical aspect and insufficient attention is paid to the aspect of management and, especially, to a business model. Therefore, in this paper, the legal background to establish the VPP has presented as well as the legal opportunities and threats for creating the VPP in Poland. The legal analysis is the starting point for each practical project. There are shown the legal regulations related to prosumers and supporting energy micro-clusters. These issues require the creation of new products, such as VPP. Next, the review of the business model was made to choose an adequate model. Three models emerge from the analysis, which can be used to build a VPP business model to a greater or lesser extent. The first of them emphasize that the business model is mainly the characteristic relations between customers, clients, partners and suppliers. The second of them underlines the significance of the company's resources, which can be expanded and used (new customers-new dispersed energy sources), as well as potential sources of future economic benefits (new products-power market, megawatts). The third of them combines the key resources and the key relations which are important for VPPs, and it is compliant with the systemic approach. This approach was chosen for further analysis. The authors presented a new business model concept, where the attention is paid to a cooperation network between different kinds of energy entities (e.g. VPP' owners, prosumers, the owners of micro-installations and others). The segmentation of potential clients of the VPP was made and eight potential segments were identified in Polish conditions. Two segmentation criteria were used: (i) the kind of product, (ii) the kind of market. The business model is perceived as a method of increasing and exploiting of company's resources for preparing new products or services for customers in order to obtain the added value (expanding the competitive advantage or increasing profitability). The examples of added values were defined in relating to the identified VPP client segments: (i) a large buyer buying energy under a long-term bilateral contract, (ii) an energy cooperative, (iii) an owner of micro-installation, (iv) a company that owns energy storage, e.g. hybrid vehicle charging stations, storages, (v) energy cluster. Additionally, for all customer segments there are specified (1) relations which connect VPP with the representatives of a specific customer segment and (2) communication channels which significantly affect the final impression on the client. In the knowledge economy, the IT tools are the main kind of communication channel, and IT resources are the key function in the VPP business model. Future research should focus on describing the remaining elements of the business model for each customer segments such as revenue streams, key resources, key activities, key partners and cost structure. In the next step economic capabilities to create E. Ropuszynska-Surma, M. Weglarz. A Virtual Power Plant as a Cooperation Network Marketing and Management of Innovations, 2018, Issue 4 137 http://mmi.fem.sumdu.edu.ua/en the VPP should be analysed with special attention paid to the evaluation of the economic efficiency of the VPP. Different scenarios including consumer segment and value proposition should be taken into consideration. It is necessary to perform an economic analysis of the data coming from a real pilot installation.
Economic Optimal Implementation of Virtual Power Plants in the German Power Market
Energies
The burden of excess energy from the high renewable energy sources (RES) share creates a significant reduction of residual load for the future, resulting in reduced market prices. The higher the share of stochastic RES, the more often the price will be 0 €/MWh. The power market needs new methods to solve these problems. The development of virtual power plants (VPPs) is aimed at solving techno-economic problems with an increasing share of RES in the power market. This study analyses a possible implementation of stochastic and deterministic RES in a VPP to generate secured power, which can be implemented in the European Power Exchange (EPEX)/European Energy Exchange (EEX) power market using existing market products. In this study, the optimal economic VPP configuration for an RES-based power plant is investigated and implemented into standard power market products. The results show that the optimal economic VPP configuration for different market products varies, depending on the energ...
Positive Balancing Service by Solar Virtual Power Plants
2014
During the past years, a large amount of photovoltaic (PV) capacity has been installed in Belgium. The main driver for this was the abundant government support (GreenPower Certicates). However, during the last few years, the support for new installations has been withdrawn and new PV capacity ceased. In previous research, it has been proven that selling PV energy of existing plants directly on the wholesale market is not feasible due to the large share of green power certicates awarded to these plants. However, the price of green power certicates has dropped signicantly and hence the balance between certicate and commodity revenue is restored. This paper investigates the possibility of providing positive balancing services to the transmission system operator by aggregating solar power in a technical Virtual Power Plant. The paper concludes that it seems not interesting, neither economically nor energetically, to keep solar plants solely for positive balancing purposes. Combination o...
A market-based Virtual Power Plant
2009 International Conference on Clean Electrical Power, 2009
The fast growing penetration of Distributed Energy Resources (DER) and the continuing trend towards a more liberalized electricity market requires more efficient energy management strategies to handle both emerging technical and economic issues. In this paper, a market-based Virtual Power Plant (MBVPP) model is proposed which provides individual DER units the accesses to current electricity markets. General bidding scenario and price signal scenario as two optional operation scenarios are operated by one MBVPP. In the end, a use case of a MBVPP with micro Combined Heat and Power (μCHP) systems demonstrates the potential benefits and operation scenarios of the MBVPP model.
International Transactions on Electrical Energy Systems, 2019
The environmental threat and rising fuel prices are the two major challenges faced by the utility to provide clean and affordable electricity to the consumers. The change in government policies provides assistance for large-scale deployment of Distributed Energy Resource (DER) like rooftop solar PV, but at the same time, the intermittent nature of this renewable-based DER produce adverse effects on utility stability and its economic viability. The concept of virtual power plant (VPP) can be a possible solution for these issues through coordination and scheduling of DER, storage, and flexible load, which results in secure operation with high penetration of DER and utility peak-load reduction. In this paper, the Distributed Energy Resources Customer Adoption Model (DER-CAM) is utilized, which is a Mixed Integer Linear Programming-based decision-making tool. For determining the potential of VPP and its implications, a case study of Punjab State Power Corporation Limited (PSPCL), a state power utility, is studied. The main objectives of the paper are cost minimization, peak-load reduction, and reliability enhancement. The DER-CAM model simulates different load profiles, and the optimal investment solution is determined, which ensures monetary benefits for both consumer and utility. LIST OF ABBREVIATIONS AND SYMBOLS: An i , annuity factor for investments in technologies i; BAU, total base case energy costs without integrated DER investment disabled; c, continuous generation technologies; CCDP g , turnkey capital cost of generation technology g; d, day type (1, 2, 3); DER, distributed energy resource; DER-CAM, distributed energy resources customer adoption model; DG, distributed generation; DR, demand response; DRLoad m,t,h,u , electricity imported from PSPCL by consumer during hour h, type of day t, and month for end use u; EMS, energy management systems; FCC (c,k) , fixed capital cost of generation technology c or storage technology k; GAMS, general algebraic modeling system; GenL i,m,t,h,u , generated power by technology i during hour h, type of day t, month m, and for end use u to supply the customer's load; h, hour (1, 2, 3 ..., 24); i, all technologies generation or storage; InvGen i , number of units of technology i installed by customer; IR, interest rate on DER investments; j, all generation technologies; k, storage technologies; load m,d,h. u , consumer load at time m, d, h; Lt i , expected lifetime of technology i (y); m, month (1, 2,3 ..., 12); MaxH j , maximum number of hours technology j can operate during the year (h); MaxP g , rated capacity of generation technology g; MCE k , minimum state of charge of battery technology k; MILP, mixed integer linear programming; MinL g , minimum acceptable load for generation technology g; MINLP, mixed integer nonlinear programming; NREL, National Renewable Energy Laboratory; OMF i , fixed annual operation and maintenance costs of technology i; OMV i , variable operation and maintenance costs of technology i; p, tariff period (onpeak, mid-peak, off-peak); PBP, maximum payback period allowed on the integrated DER investment decision (y); PSPCL, Punjab State Power Corporation Limited; PV, photovoltaic; s, season (winter and summer including paddy season); S (j) , set of end-uses that can be met by technology j; SA, available area for solar technologies; SCADA, supervisory control and data acquisition; SCE k , charging efficiency of battery technology k; SDE k , discharging efficiency of battery technology k; SI m,d,h , solar insolation at time m, d, h; SPE c , theoretical peak solar conversion efficiency of generation technology c; SRE c.m.h , solar radiation conversion efficiency of generation technology c, in month m, and hour h; TE m,d,h , energy tariff for electricity consumption charges at time m, d, h; TE xm. d. h , energy tariff for electricity export at time m, d, h;; TF m , tariff for fixed charges for using utility infrastructure in month m; TP s,p , maximum demand charges under the PSPCL tariff for season s and period p; VCC (c,k) , variable capital cost of generation technology c or storage technology k; VC j,m , generation cost of technology j during month m; VCSC (c,k) , variable capital cost of battery storage technology k; VPP, virtual power plant; φ k , losses due to decay/self-discharge in battery technology k
VPPs information needs for effective operation in competitive electricity markets
2007
The large increase of renewable energy sources and Distributed Generation (DG) of electricity gives place to the Virtual Power Producer (VPP) concept. VPPs may turn electricity generation by renewable sources valuable in electricity markets. Information availability and adequate decision-support tools are crucial for achieving VPPs' goals. This involves information concerning associated producers and market operation. This paper presents ViProd, a simulation tool that allows simulating VPPs operation, focusing mainly in the information requirements for adequate decision making.