An Optimal Virtual Power Plant Planning Strategy From A Composite System Cost/Worth Perspective

Adoption of smart grid technologies and incorporation of aggregator models like virtual power plants (VPP) necessitates the performance of new studies pertaining to their planning and operation. This paper presents a composite system cost/worth analysis based planning framework for VPP aggregators for determining an optimal distributed generation (DG) portfolio which can offer them maximum cost savings while participating in day-ahead electricity markets. The VPP's market participation costs are sub-divided into five categories, and relevant formulations are presented for each category while considering an explicit market clearing mechanism. Topology and constraint related information for both the VPP's internal network and the external (transmission) grid are incorporated into the planning strategy. A minimum cost assessment model is presented for determining the aggregator's optimal DG portfolio. The proposed planning framework is tested on the IEEE Reliability Test System in conjunction with the IEEE 69-node distribution network, and results obtained are discussed in detail.