A virtual power plant optimal dispatch model with large and small-scale distributed renewable generation

Volatility and sharp increases in the price of electricity are serious economic problems in the primary sector because they affect modernization investments for irrigation systems in Spain. This paper presents a new virtual power plant (VPP) model that integrates all available full-scale distributed renewable generation technologies. The proposed VPP operates as a single plant in the wholesale electricity market and aims to maximize profit from its operation to meet demand. Two levels of renewable energy integration in the VPP were considered: first, a wind farm and six hydroelectric power plants that inject the generated electricity directly to the distribution network, and second, on-site photovoltaic plants associated with each of the electricity supply points in the system that are designed to prioritize self-consumption. The proposed technical-economic dispatch model was developed as a mixed-integer optimization problem that determines the hourly operation of distributed large-scale renewable generation plants and on-site generation plants. The model was applied to real data from an irrigation system comprising a number of water pumping stations in Aragon (Spain). The results of the VPP model demonstrate the importance of the technical and economic management of all production facilities to significantly reduce grid dependence and final electricity costs.