Economic optimization in Virtual Power Plants vs. stable grid operation—bridging the gap

In nowadays Smart Grids, economic optimizations performed by Virtual Power Plants (VPPs) may interfere with stable grid operation required by Distribution System Operators (DSOs). Since Smart Grids and VPPs are important building blocks of future energy systems, bridging the gap between economic optimization performed by VPPs and stable grid operation required by DSOs is an important task. In this paper, we present a fundamental system architecture and a concept enabling VPPs and DSOs to negotiate their positions to satisfy the needs and requirements of both sides. Thus, instead of being a potential interference factor, economically sensible operation of distributed energy resources (DERs) organized in VPPs and stable grid operation as required by DSOs are integrated in a common solution.