energy dispatch using virtual power plant

A Project report on
ENERGY DISPATCH USING VIRTUAL POWER PLANT
Report of final year project for
Master of Technology in Power and Energy System Engineering
By
Gautam Kumar
Scholar No.-1923202
Under the guidance of
DR. T. Malakar
Department of Electrical Engineering
Course-Master of Technology
Specialization-Power and Energy System Engineering
NIT, SILCHAR

SUPERVISION CERTIFICATE
This is to certify that project thesis entitled “ENERGY DISPATCH USING VIRTUAL
POWER PLANT” being submitted by
GAUTAM KUMAR Scholar No.-1923208
to National institute of technology, Silchar (Assam) for the award of final year
project work is a record of thesis work carried out by them under my supervision.
The results embodied in this thesis have not been submitted elsewhere to any other
university or institute for the award of any degree.
Date: 12/10/2020
Place: Cachar, Assam
---------------------------- ------------------------------ Dr.
Jyoti Prakash Mishra Dr. T. Malakar
Head of the Department Assistant professor
Dept. of Electrical Engineering Dept. of Electrical Engineering

DECLARATION BY THE STUDENT
We hereby declare that the work mentioned in the report entitled “ENERGY
DISPATCH USING VIRTUAL POWER PLANT” submitted at National institute of
technology, Silchar (Assam) is an authentic record of our survey work carried out
under the supervision of associate professor Dr. T. Malakar We have not
submitted this work elsewhere for any other degree. We are fully responsible for
the content of my report.
-------------------------
NAME Scholar NO.
Gautam Kumar Scholar No.-1923202
Dept. of Electrical Engineering
Specialization-Power and Energy System Engineering
National institute of technology, Silchar (Assam)
ACKNOWLEDGEMENT

We are deeply indebted to Dr. T. Malakar, Assistant Prof. of Department of
Electrical Engineering for his sincere and dedicated cooperation and
encouragement towards the completion of this project entitled “ENERGY
DISPATCH USING VIRTUAL POWER PLANT”
I would also like to thank all the faculty members of Department of EE, for their
invaluable advice and whole-hearted cooperation.
Gracious gratitude to all the faculty of the Department of Electrical Engineering
for their valuable advice and encouragement.
Last but not the least, I thank all others, and especially our batch mates and our
family members who are one way or another helped me in the successful
completion of this work.
Gautam Kumar
CONTENT
1. Overview of Energy Dispatch

2. Market based energy dispatch
3. Market based energy dispatch
4. Energy dispatch using virtual power plant
5. Literature review
6. Scope and objective
7. Implementation
8. References
Overview of Energy Dispatch

History: Conventional Power Plants
“Centralized generation” refers to the large-scale generation of electricity at centralized
facilities. These facilities are usually located away from end-users and connected to a
network of high-voltage transmission lines. The electricity generated by centralized
generation is distributed through the electric power grid to multiple end-users. Centralized
generation facilities include fossil-fuel-fired power plants, nuclear power plants,
hydroelectric dams, wind farms, and more.
The National Grid is the high-voltage electricity transmission network in mainland India,
connecting power stations and major substations and ensuring that electricity generated
anywhere in mainland India can be used to satisfy demand elsewhere. The National Grid is
owned, operated, and maintained by state-owned Power Grid Corporation of India. Itis one
of the largestoperationalsynchronousgridsinthe worldwith 371.054 GWofinstalled power
generation capacity as of 30 June 2020.
IndividualState grids were interconnected to form 5 regional grids covering mainland India.
The grids were the Northern, Eastern, Western, North Eastern and Southern Grids. These
regional links were established to enable transmission of surplus electricity between States
in each region. In the 1990s, the Indian government began planning for a national grid.
Benefits of interconnected grids:
 These interconnected grids ensures the reliability of power supply.
 Due to this interconnection a proper power quality of the electricity is maintained and
being delivered to customer.
Disadvantages of conventional grid and interconnected grids:
 Due to this interconnection the network become very complex to analyse.
 Fault in any line of system affects large no of customers.
 As conventional grids are located far away from the loads a huge amount of
transmission loss is incorporated.

History: Distributed Generation
As conventional grids are mainly operated with fossils fuels. And they are concerned with
many losses. Conventional power stations, such as coal-fired, gas, and nuclear
powered plants, as well as hydroelectric dams and large-scale solar power stations, are
centralized and often require electric energy to be transmitted over long distances.
Advantages of distributed generations:
 Convenient local positioning avoids transmission and distribution losses
 Generation adjacent to loads allows convenient use of heat energy (combined heat
and power [CHP])
 Convenient local positioning enables available sources of energy to be used, for
example wasteproducts or renewable resources may be easily utilized to supplement
fossil fuels
 Convenient local positioning allows the use of available single or three phase
generation
Disadvantages in using distributed generation:
 Conventionaldistributionsystemsneed adequateprotection in orderto accommodate
exchange of power
 Signaling for dispatch of resources becomes extremely complicated
 Connection and revenue contracts are difficult to establish
Market based Energy Dispatch

IndianPowersectoris characterizedby multiplicity of playersacrossallsegments of thevalue
chain viz., generation, transmission, trading and distribution. There are more than 600
generating stations, 30+ transmission licensees, 70 odd distribution licensees, 2 power
exchanges,40odd trading licensees,load dispatchersatthecenter, in each of thefiveregions
and in each of the 29 States. The total installed generation capacity is 346 GW (as on
September 2018), outof which 57% is from Coal, about 13% Hydro, 21% Renewables, 7.2%
Gas, and 2% Nuclear. (Figure 1)
Figure 1. All India Installed Capacity (as on September 2018)
Source:http://www.cea.nic.in/reports/monthly/installedcapacity/2018/installed_capacity-09.pdf
At present, under the self-scheduling mechanism the discoms prepare their schedule from
their portfolio of contracts to meet the expected load. These schedules are submitted to the
load-dispatch centers as per the timelines discussed in section 1. This process does not
mandate the discoms to declare the cost of their scheduled generation, more precisely, the
variable cost.

Thereareconsequentialissuesthatarisedueto self-scheduling.Forinstance,itleaves several
low-costgeneration capacities partially or sub-optimallyutilized. This is because, the discoms
do not have visibility of other cheaper options nor do they have the right to
requisition/schedule power from the generating stations with which they do not have a
contract. Discoms do not have the opportunity to identify cheaper generation outside their
portfolio due to the lack of visibility of such available capacity.

What is virtual power plant?
A Virtual Power Plant is a network of decentralized, medium-scale power generating units
suchas wind farms,solarparks,andCombined Heat and Power(CHP) units, as wellas flexible
powerconsumersand storagesystems. Theinterconnected units aredispatched through the
central controlroomof the Virtual Power Plantbut nonetheless remain independent in their
operation and ownership.
The objectiveof a Virtual Power Plantis to relieve the load on the grid by smartly distributing
the power generated by the individual units during periods of peak load. Additionally, the
combined power generation and power consumption of the networked units in the Virtual
Power Plant is traded on the energy exchange.
Figure 2: schematic diagram of virtual power plant

Advantages of virtual power plant:
Flexible Configuration: A virtual power plant can be expanded by simply adding new
distributed energy resources to the virtual platform. Conventional power plants do not
offer this flexibility, since equipment is normally rated in megawatts.
Power Grid Load Reduction: When conventional power plants are used, their full output
must be carried by power lines, to then be distributed by substations and smaller
distribution lines. With a VPP, energy flows are also distributed, which reduces the load on
individual power lines.
Higher Reliability: A conventional power plant can be brought offline if a key component
suffers a fault, but a VPP does not have this weakness. If a fault affects one of the
generation systems connected to the VPP, there is only a very small loss of capacity.

Energy dispatch using virtual power plants
A Virtual Power Plant (VPP) composed of distributed energy resources (DER) with load and
generation forecasting. The large-scale integration of renewable energy and energy storage
systems have introduced many technical and economic challenges to both customers and
utilities. The VPP has two components: a forecastand analytics component, and an electrical
systems controlcomponent. The forecaster generates the dispatch schedule for each player
in the VPP e.g. a PV station, and the loads. This is done by taking historical load and weather
data, models of the VPP players, and the weather forecastas inputs. The electrical systems
controllers use the dispatch schedule to regulate power flows from each individual player
and to the loads.
 Virtual power plant (VPP) will store the data of surplus energy available in all the
DGs over a cloud.
 Due to stored data virtual power plant can deliver even large amount of sudden
increase in power demand.
 With stored data VPP can bid in wholesale electricity market and can deliver at
optimum price.

Objective function and formulation
The objective of this paper is to maximize the profitof CPP and VPP as well. Subjected
to utilization of maximum power generation limit.
• 𝑀𝑎𝑥 𝑝𝑟𝑜𝑓𝑖𝑡 = (∑ 𝜌𝑖𝐶𝑃𝑃 𝑃𝑖𝐶𝑃𝑃+𝜌𝑖𝑉𝑃𝑃 𝑃𝑖𝑉𝑃𝑃
𝑁
𝑖=1 ) − (𝑓𝐶𝑃𝑃 + 𝑓𝑉𝑃𝑃)
Where 𝜌𝑖𝐶𝑃𝑃= Energy sale price of conventional plant ($/MWh).
𝜌𝑖𝑉𝑃𝑃 = Energy sale price of VPP ($/MWh).
𝑃𝑖𝐶𝑃𝑃=Energy sold by conventional plant. (MWh)
𝑃𝑖𝑉𝑃𝑃=Energy sold by VPP. (MWh).
𝑓𝐶𝑃𝑃 = Operating and maintenance cost of CPP.
𝑓𝑉𝑃𝑃 = Operating and maintenance cost of VPP.
With an appropriatesolving method the operating and production cost of CPP can be
reduced. And the revenue generated from

REFERENCES
[1]Bai, Hao, et al. "Optimal dispatch strategy of a virtual power plant containing
battery switch stations in a unified electricity market." Energies 8.3 (2015):
2268-2289.
[2]Thavlov, Anders, and Henrik W. Bindner. "Utilization of flexible demand in a
virtual power plant set-up." IEEE Transactions on Smart Grid 6.2 (2014): 640-
647.
[3]Naval, Natalia, Raul Sánchez, and Jose M. Yusta. "A virtual power plant optimal
dispatch model with large and small-scale distributed renewable
generation." Renewable Energy 151 (2020): 57-69.
[4]Huang,Chongxin, et al. "Economic dispatchof power systemswithvirtualpower
plant based interval optimization method." CSEE journal of power and energy
systems 2.1 (2016): 74-80.
[5]Naval, Natalia, Raul Sánchez, and Jose M. Yusta. "A virtual power plant optimal
dispatch model with large and small-scale distributed renewable
generation." Renewable Energy 151 (2020): 57-69.
[6]Huang, Chongxin, et al. "Economic dispatch of power systems with virtual
power plant based interval optimization method." CSEE journalof power and
energy systems2.1 (2016): 74-80.
[7]Pandžić, Hrvoje, Igor Kuzle, and Tomislav Capuder. "Virtualpower plant mid-
term dispatch optimization." Applied Energy 101 (2013): 134-141.
[8]Yang, Hongming, et al. "Distributed optimal dispatch of virtual power plant via
limited communication." IEEE Transactionson Power Systems 28.3 (2013):
3511-3512.

energy dispatch using virtual power plant

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