Virtual Power Plant: Concept and Operation Optimization Algorithm

Considering recent growing trend towards new technologies in electrical power supply, the need for systemized controlling methods have emerged. Morphing from centralized into decentralized electrical power supplies, tremendous growth in Communication and information technology and the advent of environmental friendly, small size and efficient generators close to the loads have introduced  new issues in power supply researches. 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 electrical power market. In this paper an operation optimization algorithm is proposed to integrate two DGs and a micro grid into a VPP control area, containing several loads, which will be able to generate and sell electrical energy to loads and electrical power market. Suitable model is proposed to simulate suggested VPP, and the energy exchange between VPP and Grid. The optimization problem is here formulated as a non-liner maximization algorithm with constraints, where the objective function is profit of the VPP. Finally, solving a case study of the proposed VPP with GAMS and also genetic algorithm will be presented and the results will be compared.