Virtual Power Plant: New Solution for Managing Distributed Generations in Decentralized Power Systems

The presence of distributed generation poses new challenges in the management and operation of electrical grids. Distributed generation (wind, combined heat and power, etc.) already accounts for 20% or more of total generation in some electric utilities and this figure is constantly increasing worldwide. With the advent of environmental friendly, small size and efficient generators close to the loads new issues in power supply researches have introduced. Indicating small size and separate characteristics, the aggregation of these efficient generators can be developed as a virtual power plant (VPP) concept in order to provide added-value to the electric Power system. VPP is the primary solution for achieving cost efficient integration in distributed generation (DG) in decentralized electrical power market. TSOs, DSOs and energy markets need to have some visibility on a large number of small power injections. This paper presents solutions to adapt classical tools and processes so that energy management systems can efficiently supervise and manage distributed generation.