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Cost–Benefit Analysis of a Virtual Power Plant Including Solar PV, Flow Battery, Heat Pump, and Demand Management: A Western Australian Case Study

Author

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  • Behnaz Behi

    (Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia)

  • Ali Baniasadi

    (Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia)

  • Ali Arefi

    (Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia)

  • Arian Gorjy

    (Yaran Property Group, South Perth 6151, Australia)

  • Philip Jennings

    (Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia)

  • Almantas Pivrikas

    (Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia)

Abstract

Achieving the renewable energy integration target will require the extensive engagement of consumers and the private sector in investment and operation of renewable-based energy systems. Virtual power plants are an efficient way to implement this engagement. In this paper, the detailed costs and benefits of implementing a realistic virtual power plant (VPP) in Western Australia, comprising 67 dwellings, are calculated. The VPP is designed to integrate and coordinate rooftop solar photovoltaic panels (PV), vanadium redox flow batteries (VRFB), heat pump hot water systems (HWSs), and demand management mechanisms. An 810-kW rooftop solar PV system is designed and located using the HelioScope software. The charging and the discharging of a 700-kWh VRFB are scheduled for everyday use over a year using an optimization algorithm, to maximize the benefit of it for the VPP owners and for the residents. The use of heat pump HWSs provides a unique opportunity for the residents to save energy and reduce the total cost of electricity along with demand management on some appliances. The cost-and-benefit analysis shows that the cost of energy will be reduced by 24% per dwelling in the context of the VPP. Moreover, the internal rate of return for the VPP owner is at least 11% with a payback period of about 8.5 years, which is a promising financial outcome.

Suggested Citation

  • Behnaz Behi & Ali Baniasadi & Ali Arefi & Arian Gorjy & Philip Jennings & Almantas Pivrikas, 2020. "Cost–Benefit Analysis of a Virtual Power Plant Including Solar PV, Flow Battery, Heat Pump, and Demand Management: A Western Australian Case Study," Energies, MDPI, vol. 13(10), pages 1-24, May.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:10:p:2614-:d:360998
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    Cited by:

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    2. Thomas Adisorn & Lena Tholen & Johannes Thema & Hauke Luetkehaus & Sibylle Braungardt & Katja Huenecke & Katja Schumacher, 2020. "Towards a More Realistic Cost–Benefit Analysis—Attempting to Integrate Transaction Costs and Energy Efficiency Services," Energies, MDPI, vol. 14(1), pages 1-15, December.
    3. Bhuiyan, Erphan A. & Hossain, Md. Zahid & Muyeen, S.M. & Fahim, Shahriar Rahman & Sarker, Subrata K. & Das, Sajal K., 2021. "Towards next generation virtual power plant: Technology review and frameworks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    4. Behnaz Behi & Ali Arefi & Philip Jennings & Arian Gorjy & Almantas Pivrikas, 2021. "Advanced Monitoring and Control System for Virtual Power Plants for Enabling Customer Engagement and Market Participation," Energies, MDPI, vol. 14(4), pages 1-19, February.
    5. Michał Jasiński & Tomasz Sikorski & Dominika Kaczorowska & Jacek Rezmer & Vishnu Suresh & Zbigniew Leonowicz & Paweł Kostyła & Jarosław Szymańda & Przemysław Janik & Jacek Bieńkowski & Przemysław Prus, 2021. "A Case Study on Data Mining Application in a Virtual Power Plant: Cluster Analysis of Power Quality Measurements," Energies, MDPI, vol. 14(4), pages 1-14, February.
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    7. Xukun Zhang & Fancheng Meng & Linquan Sun & Zhaowu Zhu & Desheng Chen & Lina Wang, 2022. "Influence of Several Phosphate-Containing Additives on the Stability and Electrochemical Behavior of Positive Electrolytes for Vanadium Redox Flow Battery," Energies, MDPI, vol. 15(21), pages 1-14, October.
    8. Guntram Pressmair & Christof Amann & Klemens Leutgöb, 2021. "Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers," Energies, MDPI, vol. 14(21), pages 1-28, October.
    9. Charalampos Papadopoulos & Athanasios Bachoumis & Niki Skopetou & Costas Mylonas & Nikolaos Tagkoulis & Petros Iliadis & Ioannis Mamounakis & Nikolaos Nikolopoulos, 2023. "Integrated Methodology for Community-Oriented Energy Investments: Architecture, Implementation, and Assessment for the Case of Nisyros Island," Energies, MDPI, vol. 16(19), pages 1-20, September.
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    14. Myada Shadoul & Razzaqul Ahshan & Rashid S. AlAbri & Abdullah Al-Badi & Mohammed Albadi & Mohsin Jamil, 2022. "A Comprehensive Review on a Virtual-Synchronous Generator: Topologies, Control Orders and Techniques, Energy Storages, and Applications," Energies, MDPI, vol. 15(22), pages 1-27, November.
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