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## Transformation of microgrid to virtual power plant

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In this chapter, the problem of microgrid (MG) and virtual power plant (VPP) concepts are considered as the most promising solutions to integrate distributed generation resources into the electric power system. Currently, the main drawback of distributed energy resource (DER) is that many of them are operating individually without any coordination with other electrical power sources, which leads to decrease of main grid reliability. MG, as a group of DER and interconnected loads, can connect and disconnect from the grid to enable it to operate in both grid-connected or standalone/isolated mode. With emerging of advanced communication and information technology, the small DER units would be aggregated then monitored, controlled and treated as a single large power plant. Bidirectional power flows, stability issues, uncertainty are the challenges to MGs. These can be overcome by integrating MGs as VPP. This concept can strengthen and diversified generation structure through decentralized dispatching and distribution energy networks. Additionally, a DER prosumers grouped together, controlled and coordinated by VPP may become significant part of the wholesale market. There are many approaches to the VPP concept. In this chapter, the concept of VPP for DER integration with power system is introduced and discussed. The focus will be paid to the modelling of proposed concept by MATLAB® SimulinkTM software and the results of the simulation in different operation scenarios have been presented.

Chapter Contents:

• 4.1 Introduction
• 4.2 Evolution of electricity–the case of Polish electricity sector
• 4.3 Liberalization of the energy markets
• 4.3.1 Future problem identification
• 4.3.1.1 Voltage control issues
• 4.3.1.2 Short-circuit protection issue
• 4.4 Microgrid turns to virtual power plant
• 4.4.1 MGs structure and application
• 4.5 Microgrid configuration
• 4.6 Microsource controller
• 4.6.1 Virtual power plant general concept
• 4.6.1.1 Overview of virtual power plants
• 4.7 Types of Virtual Power Plants
• 4.7.1 An area-based approach to virtual power plants
• 4.7.2 Grid support and ancillary services
• 4.7.2.1 Virtual power plant for regulation
• 4.7.3 VPP model and algorithms
• 4.7.3.1 Optimal power flow (OPF)–technical aspects
• 4.7.3.2 Production planning–market aspects
• 4.8 Difference between microgrid and VPP
• 4.9 Information communication technologies
• 4.9.1 RSTP grid mechanism
• 4.9.2 SHP grid mechanism
• 4.9.3 HSR grid mechanism
• 4.9.4 PRP grid mechanism
• 4.9.5 Microgrid/VPP cybersecurity
• 4.9.6 Energy management system
• 4.9.7 Supervision control and data acquisition
• 4.9.8 Control system operation and states
• 4.9.9 Databases
• 4.9.10 Database management process
• 4.9.11 Distribution and dispatching centre
• 4.10 Case study: regulation of VPP and MGs
• 4.11 Conclusion
• References

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