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A Comprehensive Study on Virtual Power Plants: Operations, Benefits, Challenges, and Future Trends

Mou Mahmood, Khadiza Talukder, Mahmudul Hasan, Nahid-Ur- Rahman Chowdhury

Abstract


Virtual power plants (VPPs) serve as an innovative integration and management technology for renewable energy sources (RESs). This review article examines the internal operation, benefits, challenges, and future prospects of VPPs within the modern power grid. VPPs function by integrating various distributed energy resources (DERs) into a cohesive and controllable network, leveraging advanced technologies to optimize energy generation, storage, and distribution. This enhances grid reliability and resilience. The primary benefits of VPPs include increased flexibility in power generation, heightened energy efficiency, and improved grid stability through real-time monitoring and control. By aggregating renewable sources like solar and wind, alongside storage systems and demand response, VPPs support a more sustainable and decentralized energy landscape. However, challenges such as cybersecurity threats, regulatory barriers, and the necessity for standardized communication protocols impede broader adoption. Overcoming these challenges is essential for harnessing the full potential of VPPs. With ongoing advancements in artificial intelligence (AI) and smart grid (SG) technologies, the future of VPPs looks promising. They are poised to play a crucial role in the energy transition, significantly enhancing the utilization and management of DERs.


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References


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