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Economic Optimal Implementation of Virtual Power Plants in the German Power Market

Author

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  • Dodiek Ika Candra

    (Department of Waste & Resource Management, Faculty of Agricultural and Environmental Science, University of Rostock, 18059 Rostock, Germany)

  • Kilian Hartmann

    (Department of Engineering Science, Faculty of Engineering, Aschaffenburg University of Applied Sciences, 63743 Aschaffenburg, Germany)

  • Michael Nelles

    (Department of Waste & Resource Management, Faculty of Agricultural and Environmental Science, University of Rostock, 18059 Rostock, Germany
    Deutsches Biomasseforschunsgzentrum gGmbH (DBFZ), the Centre for Biomass Research in Germany, 04347 Leipzig, Germany)

Abstract

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 energy availability and the marginal costs of the VPP components. The size of the VPP components is positively correlated to the components’ share of the energy generated. It was also found that projecting or implementing VPPs in Germany at current market prices (EPEX/EEX prices) is not yet economically feasible for a small share of market products. However, the secured power can be marketed on the SPOT and in the futures market with higher and more stable prices compared with the status quo.

Suggested Citation

  • Dodiek Ika Candra & Kilian Hartmann & Michael Nelles, 2018. "Economic Optimal Implementation of Virtual Power Plants in the German Power Market," Energies, MDPI, vol. 11(9), pages 1-24, September.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:9:p:2365-:d:168475
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    References listed on IDEAS

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    Cited by:

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    3. Sampath Kumar Venkatachary & Jagdish Prasad & Ravi Samikannu & Annamalai Alagappan & Leo John Baptist & Raymon Antony Raj, 2020. "Macro Economics of Virtual Power Plant for Rural Areas of Botswana," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 196-207.
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    5. Michal Jasiński & Tomasz Sikorski & Dominika Kaczorowska & Jacek Rezmer & Vishnu Suresh & Zbigniew Leonowicz & Paweł Kostyla & Jarosław Szymańda & Przemysław Janik, 2020. "A Case Study on Power Quality in a Virtual Power Plant: Long Term Assessment and Global Index Application," Energies, MDPI, vol. 13(24), pages 1-20, December.
    6. Bianca Goia & Tudor Cioara & Ionut Anghel, 2022. "Virtual Power Plant Optimization in Smart Grids: A Narrative Review," Future Internet, MDPI, vol. 14(5), pages 1-22, April.
    7. Albana ILO, 2019. "Design of the Smart Grid Architecture According to Fractal Principles and the Basics of Corresponding Market Structure," Energies, MDPI, vol. 12(21), pages 1-24, October.
    8. Tomasz Sikorski & Michał Jasiński & Edyta Ropuszyńska-Surma & Magdalena Węglarz & Dominika Kaczorowska & Paweł Kostyła & Zbigniew Leonowicz & Robert Lis & Jacek Rezmer & Wilhelm Rojewski & Marian Sobi, 2019. "A Case Study on Distributed Energy Resources and Energy-Storage Systems in a Virtual Power Plant Concept: Economic Aspects," Energies, MDPI, vol. 12(23), pages 1-21, November.
    9. Wafa Nafkha-Tayari & Seifeddine Ben Elghali & Ehsan Heydarian-Forushani & Mohamed Benbouzid, 2022. "Virtual Power Plants Optimization Issue: A Comprehensive Review on Methods, Solutions, and Prospects," Energies, MDPI, vol. 15(10), pages 1-20, May.
    10. Naval, Natalia & Yusta, Jose M., 2021. "Virtual power plant models and electricity markets - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).

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