IDEAS home Printed from https://ideas.repec.org/a/gam/jftint/v14y2022i5p128-d799254.html
   My bibliography  Save this article

Virtual Power Plant Optimization in Smart Grids: A Narrative Review

Author

Listed:
  • Bianca Goia

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

  • Tudor Cioara

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

  • Ionut Anghel

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

Abstract

Virtual power plants (VPPs) are promising solutions to address the decarbonization and energy efficiency goals in the smart energy grid. They assume the coordination of local energy resources such as energy generation, storage, and consumption. They are used to tackle problems brought by the stochastic nature of renewable energy, lack of energy storage devices, or insufficient local energy flexibility on the demand side. VPP modeling, management, and optimization are open to research problems that should consider, on one side, the local constraints in the operation of the energy resources and power flows and the energy grid’s sustainability objectives on the other side. There are multiple goals to create a VPP, such as to deliver energy services on a market or to the grid operator, to operate a microgrid in autonomy decoupled from the main grid, or to sustain local energy communities. In this paper, we present the results of a narrative review carried out on the domain of VPP optimization for the local energy grid integration. We have defined a search strategy that considers highly rated international databases (i.e., Elsevier, IEEE, and MDPI) in a six-year timeframe and applied objective inclusion/exclusion criteria for selecting articles and publications for the review; 95 articles have been analyzed and classified according to their objectives and solutions proposed for optimizing VPP integration in smart grids. The results of the study show that VPP concepts and applications are well addressed in the research literature, however, there is still work to be done on: engaging prosumers and citizens in such a virtual organization, developing heuristics to consider a wider range of local and global constraints and non-energy vectors, and to decentralize and make transparent the services delivery and financial settlement towards community members. This study can help researchers to understand the current directions for VPP integration in smart grids. As a next step we plan to further analyze the open research directions related to this problem and target the development of innovative solutions to allow the integration of multi-energy assets and management of cross energy sector services in energy communities.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jftint:v:14:y:2022:i:5:p:128-:d:799254
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1999-5903/14/5/128/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1999-5903/14/5/128/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roham Torabi & Álvaro Gomes & F. Morgado-Dias, 2021. "Energy Transition on Islands with the Presence of Electric Vehicles: A Case Study for Porto Santo," Energies, MDPI, vol. 14(12), pages 1-24, June.
    2. Zamani, Ali Ghahgharaee & Zakariazadeh, Alireza & Jadid, Shahram, 2016. "Day-ahead resource scheduling of a renewable energy based virtual power plant," Applied Energy, Elsevier, vol. 169(C), pages 324-340.
    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. Leonard Burg & Gonca Gürses-Tran & Reinhard Madlener & Antonello Monti, 2021. "Comparative Analysis of Load Forecasting Models for Varying Time Horizons and Load Aggregation Levels," Energies, MDPI, vol. 14(21), pages 1-16, November.
    5. Piotr F. Borowski, 2021. "Digitization, Digital Twins, Blockchain, and Industry 4.0 as Elements of Management Process in Enterprises in the Energy Sector," Energies, MDPI, vol. 14(7), pages 1-20, March.
    6. Shabanzadeh, Morteza & Sheikh-El-Eslami, Mohammad-Kazem & Haghifam, Mahmoud-Reza, 2016. "A medium-term coalition-forming model of heterogeneous DERs for a commercial virtual power plant," Applied Energy, Elsevier, vol. 169(C), pages 663-681.
    7. Zerrahn, Alexander & Schill, Wolf-Peter & Kemfert, Claudia, 2018. "On the economics of electrical storage for variable renewable energy sources," European Economic Review, Elsevier, vol. 108(C), pages 259-279.
    8. Michelle Maceas Henao & Jairo José Espinosa Oviedo, 2022. "Bidding Strategy for VPP and Economic Feasibility Study of the Optimal Sizing of Storage Systems to Face the Uncertainty of Solar Generation Modelled with IGDT," Energies, MDPI, vol. 15(3), pages 1-13, January.
    9. 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.
    10. Juan C. Sarmiento-Vintimilla & Esther Torres & Dunixe Marene Larruskain & María José Pérez-Molina, 2022. "Applications, Operational Architectures and Development of Virtual Power Plants as a Strategy to Facilitate the Integration of Distributed Energy Resources," Energies, MDPI, vol. 15(3), pages 1-28, January.
    11. Mario Tovar & Miguel Robles & Felipe Rashid, 2020. "PV Power Prediction, Using CNN-LSTM Hybrid Neural Network Model. Case of Study: Temixco-Morelos, México," Energies, MDPI, vol. 13(24), pages 1-15, December.
    12. Prince Waqas Khan & Yongjun Kim & Yung-Cheol Byun & Sang-Joon Lee, 2021. "Influencing Factors Evaluation of Machine Learning-Based Energy Consumption Prediction," Energies, MDPI, vol. 14(21), pages 1-22, November.
    13. Tao Hong & Pierre Pinson & Yi Wang & Rafal Weron & Dazhi Yang & Hamidreza Zareipour, 2020. "Energy forecasting: A review and outlook," WORking papers in Management Science (WORMS) WORMS/20/08, Department of Operations Research and Business Intelligence, Wroclaw University of Science and Technology.
    14. Faisal Saeed & Anand Paul & Hyuncheol Seo, 2022. "A Hybrid Channel-Communication-Enabled CNN-LSTM Model for Electricity Load Forecasting," Energies, MDPI, vol. 15(6), pages 1-17, March.
    15. Sai Sudharshan Ravi & Muhammad Aziz, 2022. "Utilization of Electric Vehicles for Vehicle-to-Grid Services: Progress and Perspectives," Energies, MDPI, vol. 15(2), pages 1-27, January.
    16. Hyang-A Park & Gilsung Byeon & Wanbin Son & Hyung-Chul Jo & Jongyul Kim & Sungshin Kim, 2020. "Digital Twin for Operation of Microgrid: Optimal Scheduling in Virtual Space of Digital Twin," Energies, MDPI, vol. 13(20), pages 1-15, October.
    17. Blaschke, Maximilian J., 2022. "Dynamic pricing of electricity: Enabling demand response in domestic households," Energy Policy, Elsevier, vol. 164(C).
    18. Hany Elgamal, Ahmed & Kocher-Oberlehner, Gudrun & Robu, Valentin & Andoni, Merlinda, 2019. "Optimization of a multiple-scale renewable energy-based virtual power plant in the UK," Applied Energy, Elsevier, vol. 256(C).
    19. Rohit Trivedi & Sandipan Patra & Yousra Sidqi & Benjamin Bowler & Fiona Zimmermann & Geert Deconinck & Antonios Papaemmanouil & Shafi Khadem, 2022. "Community-Based Microgrids: Literature Review and Pathways to Decarbonise the Local Electricity Network," Energies, MDPI, vol. 15(3), pages 1-30, January.
    20. Park, Sung-Won & Son, Sung-Yong, 2020. "Interaction-based virtual power plant operation methodology for distribution system operator’s voltage management," Applied Energy, Elsevier, vol. 271(C).
    21. Ju, Liwei & Tan, Zhongfu & Yuan, Jinyun & Tan, Qingkun & Li, Huanhuan & Dong, Fugui, 2016. "A bi-level stochastic scheduling optimization model for a virtual power plant connected to a wind–photovoltaic–energy storage system considering the uncertainty and demand response," Applied Energy, Elsevier, vol. 171(C), pages 184-199.
    22. 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.
    23. 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.
    24. Dominika Kaczorowska & Jacek Rezmer & Michal Jasinski & Tomasz Sikorski & Vishnu Suresh & Zbigniew Leonowicz & Pawel Kostyla & Jaroslaw Szymanda & Przemyslaw Janik, 2020. "A Case Study on Battery Energy Storage System in a Virtual Power Plant: Defining Charging and Discharging Characteristics," Energies, MDPI, vol. 13(24), pages 1-22, December.
    25. Frauke Oest & Malin Radtke & Marita Blank-Babazadeh & Stefanie Holly & Sebastian Lehnhoff, 2021. "Evaluation of Communication Infrastructures for Distributed Optimization of Virtual Power Plant Schedules," Energies, MDPI, vol. 14(5), pages 1-20, February.
    26. Komsan Hongesombut & Suphicha Punyakunlaset & Sillawat Romphochai, 2021. "Under Frequency Protection Enhancement of an Islanded Active Distribution Network Using a Virtual Inertia-Controlled-Battery Energy Storage System," Sustainability, MDPI, vol. 13(2), pages 1-39, January.
    27. Howell, Shaun & Rezgui, Yacine & Hippolyte, Jean-Laurent & Jayan, Bejay & Li, Haijiang, 2017. "Towards the next generation of smart grids: Semantic and holonic multi-agent management of distributed energy resources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 193-214.
    28. Stefano Bianchi & Allegra De Filippo & Sandro Magnani & Gabriele Mosaico & Federico Silvestro, 2021. "VIRTUS Project: A Scalable Aggregation Platform for the Intelligent Virtual Management of Distributed Energy Resources," Energies, MDPI, vol. 14(12), pages 1-31, June.
    29. Kasaei, Mohammad Javad & Gandomkar, Majid & Nikoukar, Javad, 2017. "Optimal management of renewable energy sources by virtual power plant," Renewable Energy, Elsevier, vol. 114(PB), pages 1180-1188.
    30. Sakdirat Kaewunruen & Panrawee Rungskunroch & Joshua Welsh, 2018. "A Digital-Twin Evaluation of Net Zero Energy Building for Existing Buildings," Sustainability, MDPI, vol. 11(1), pages 1-22, December.
    31. Tomasz Sikorski & Michal Jasiński & Edyta Ropuszyńska-Surma & Magdalena Węglarz & Dominika Kaczorowska & Paweł Kostyla & Zbigniew Leonowicz & Robert Lis & Jacek Rezmer & Wilhelm Rojewski & Marian Sobi, 2020. "A Case Study on Distributed Energy Resources and Energy-Storage Systems in a Virtual Power Plant Concept: Technical Aspects," Energies, MDPI, vol. 13(12), pages 1-30, June.
    32. Naval, Natalia & Yusta, Jose M., 2021. "Virtual power plant models and electricity markets - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    33. Harpreet Sharma & Sachin Mishra & Javed Dhillon & Naveen Kumar Sharma & Mohit Bajaj & Rizwan Tariq & Ateeq Ur Rehman & Muhammad Shafiq & Habib Hamam, 2022. "Feasibility of Solar Grid-Based Industrial Virtual Power Plant for Optimal Energy Scheduling: A Case of Indian Power Sector," Energies, MDPI, vol. 15(3), pages 1-21, January.
    34. Shabanzadeh, Morteza & Sheikh-El-Eslami, Mohammad-Kazem & Haghifam, Mahmoud-Reza, 2017. "An interactive cooperation model for neighboring virtual power plants," Applied Energy, Elsevier, vol. 200(C), pages 273-289.
    35. 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.
    36. Andreea Valeria Vesa & Tudor Cioara & Ionut Anghel & Marcel Antal & Claudia Pop & Bogdan Iancu & Ioan Salomie & Vasile Teodor Dadarlat, 2020. "Energy Flexibility Prediction for Data Center Engagement in Demand Response Programs," Sustainability, MDPI, vol. 12(4), pages 1-23, February.
    37. Ahmed Abdelaziz & Vitor Santos & Miguel Sales Dias, 2021. "Machine Learning Techniques in the Energy Consumption of Buildings: A Systematic Literature Review Using Text Mining and Bibliometric Analysis," Energies, MDPI, vol. 14(22), pages 1-31, November.
    38. Tomasz Popławski & Sebastian Dudzik & Piotr Szeląg & Janusz Baran, 2021. "A Case Study of a Virtual Power Plant (VPP) as a Data Acquisition Tool for PV Energy Forecasting," Energies, MDPI, vol. 14(19), pages 1-24, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francesco Gulotta & Edoardo Daccò & Alessandro Bosisio & Davide Falabretti, 2023. "Opening of Ancillary Service Markets to Distributed Energy Resources: A Review," Energies, MDPI, vol. 16(6), pages 1-25, March.
    2. Serkan Seven & Yeliz Yoldas & Ahmet Soran & Gulay Yalcin Alkan & Jaesung Jung & Taha Selim Ustun & Ahmet Onen, 2022. "Energy Trading on a Peer-to-Peer Basis between Virtual Power Plants Using Decentralized Finance Instruments," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    3. Maria Symeonidou & Agis M. Papadopoulos, 2022. "Selection and Dimensioning of Energy Storage Systems for Standalone Communities: A Review," Energies, MDPI, vol. 15(22), pages 1-28, November.
    4. Pandey, Anubhav Kumar & Jadoun, Vinay Kumar & Jayalakshmi, N.S. & Malik, Hasmat & García Márquez, Fausto Pedro, 2024. "Multi-objective price based flexible reserve scheduling of virtual power plant," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    5. Torge Wolff & Astrid Nieße, 2023. "Dynamic Overlapping Coalition Formation in Electricity Markets: An Extended Formal Model," Energies, MDPI, vol. 16(17), pages 1-28, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naval, Natalia & Yusta, Jose M., 2021. "Virtual power plant models and electricity markets - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    2. Amit Kumer Podder & Sayemul Islam & Nallapaneni Manoj Kumar & Aneesh A. Chand & Pulivarthi Nageswara Rao & Kushal A. Prasad & T. Logeswaran & Kabir A. Mamun, 2020. "Systematic Categorization of Optimization Strategies for Virtual Power Plants," Energies, MDPI, vol. 13(23), pages 1-46, November.
    3. Yu, Songyuan & Fang, Fang & Liu, Yajuan & Liu, Jizhen, 2019. "Uncertainties of virtual power plant: Problems and countermeasures," Applied Energy, Elsevier, vol. 239(C), pages 454-470.
    4. 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.
    5. 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.
    6. Naval, Natalia & Sánchez, Raul & Yusta, Jose M., 2020. "A virtual power plant optimal dispatch model with large and small-scale distributed renewable generation," Renewable Energy, Elsevier, vol. 151(C), pages 57-69.
    7. 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).
    8. Mohammad Mohammadi Roozbehani & Ehsan Heydarian-Forushani & Saeed Hasanzadeh & Seifeddine Ben Elghali, 2022. "Virtual Power Plant Operational Strategies: Models, Markets, Optimization, Challenges, and Opportunities," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    9. 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.
    10. Natalia Naval & Jose M. Yusta, 2020. "Water-Energy Management for Demand Charges and Energy Cost Optimization of a Pumping Stations System under a Renewable Virtual Power Plant Model," Energies, MDPI, vol. 13(11), pages 1-21, June.
    11. Francesco Gulotta & Edoardo Daccò & Alessandro Bosisio & Davide Falabretti, 2023. "Opening of Ancillary Service Markets to Distributed Energy Resources: A Review," Energies, MDPI, vol. 16(6), pages 1-25, March.
    12. Mahmud, Khizir & Khan, Behram & Ravishankar, Jayashri & Ahmadi, Abdollah & Siano, Pierluigi, 2020. "An internet of energy framework with distributed energy resources, prosumers and small-scale virtual power plants: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    13. Jiaqi Liu & Hongji Hu & Samson S. Yu & Hieu Trinh, 2023. "Virtual Power Plant with Renewable Energy Sources and Energy Storage Systems for Sustainable Power Grid-Formation, Control Techniques and Demand Response," Energies, MDPI, vol. 16(9), pages 1-28, April.
    14. Ju, Liwei & Zhao, Rui & Tan, Qinliang & Lu, Yan & Tan, Qingkun & Wang, Wei, 2019. "A multi-objective robust scheduling model and solution algorithm for a novel virtual power plant connected with power-to-gas and gas storage tank considering uncertainty and demand response," Applied Energy, Elsevier, vol. 250(C), pages 1336-1355.
    15. Ali Ahmadian & Kumaraswamy Ponnambalam & Ali Almansoori & Ali Elkamel, 2023. "Optimal Management of a Virtual Power Plant Consisting of Renewable Energy Resources and Electric Vehicles Using Mixed-Integer Linear Programming and Deep Learning," Energies, MDPI, vol. 16(2), pages 1-17, January.
    16. Khalil Gholami & Behnaz Behi & Ali Arefi & Philip Jennings, 2022. "Grid-Forming Virtual Power Plants: Concepts, Technologies and Advantages," Energies, MDPI, vol. 15(23), pages 1-26, November.
    17. Li, Qiang & Wei, Fanchao & Zhou, Yongcheng & Li, Jiajia & Zhou, Guowen & Wang, Zhonghao & Liu, Jinfu & Yan, Peigang & Yu, Daren, 2023. "A scheduling framework for VPP considering multiple uncertainties and flexible resources," Energy, Elsevier, vol. 282(C).
    18. Moreno, Blanca & Díaz, Guzmán, 2019. "The impact of virtual power plant technology composition on wholesale electricity prices: A comparative study of some European Union electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 99(C), pages 100-108.
    19. 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.
    20. Reza Nadimi & Masahito Takahashi & Koji Tokimatsu & Mika Goto, 2024. "The Reliability and Profitability of Virtual Power Plant with Short-Term Power Market Trading and Non-Spinning Reserve Diesel Generator," Energies, MDPI, vol. 17(9), pages 1-19, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jftint:v:14:y:2022:i:5:p:128-:d:799254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.