Virtual Power Plants Figure 4: Creating VPP Substations
that to bid DR into the market utilities don’t have to necessarily create new programs that are emergency response focused (i.e. programs that create large penalties if customers don’t participate). Instead, they can leverage their existing programs and select/choose groupings of customers that provide enough consistency that the utility can feel comfortable with bidding them into the market. Moreover, leveraging any day-ahead market awards that the utility receives, they can do a better job in forecasting both the generation and distribution system, as the direct linking between the physical and financial topologies allows them to know who and how much load is being shed tomorrow and the impact on the distribution system. These benefits, along with the ability to reconcile physical and financial settlements, can greatly improve a utilities regulatory commitments and financial incentives.
Distribution Systems & Virtual Power Plants Utilities can, therefore, define VPPs that relate directly to the
distribution model. For example, a utility can create a VPP for each substation, feeder/section or even transformer (Figure 4). Each VPP would contain one program that is modelled with customers for the defined distribution area. Just like an operational VPP, the utility would produce a forecast for each VPP within the distribution model. This information can become invaluable if the utility is able to link these to its Supervisory Control and Data Acquisition (SCADA) or Distribution Management System (DMS). For each feeder/section the utility could have a real-time, hourly or daily availability of a VPP of DG and/or a VPP of DR at each feeder section. When a power flow issue occurs or a potential outage is identified, the SCADA/DMS system could execute the appropriate VPP to help address the power flow issue. As the execution occurs, the VPP – through smart meters or other mechanisms – can directly feed the SCADA/DMS system with the actual results achieved. Likewise, modelling DG as VPPs within the distribution level (and inclusion of its forecast) would help the utility predict when DG could create an imbalanced distribution system, or when it could be dispatched to provide localised power when generation prices are high. Because VPP’s can be aggregated at various levels they can be used for both grid reliability as well as operational optimization.
106
Outcomes As Demand Response, Pricing Programs and Distributed
Generation continue to grow utilities need ways to manage their complexity and leverage their capabilities. Each type of utility faces various challenges to the business but with VPPs utilities can address some of the most pressing issues. – VPPs work for retailers to drive down procurement costs
and keep customer rates low through aggregation DR and DG to offset power procurement and bid demand into the market. – VPPs work for distributors by aggregating at a distribution
level DR and DG can balance the grid, avoid outages and extend asset life. – VPPs for generation can aggregate DR and DG and optimise
these plants with its standard portfolio to reduce peak periods, contribute to spinning reserves and offset renewables. ■
Aaron Zurborg is Director of Smart Grid Strategy at Ventyx – a leading software provider to global energy, utility, communications, and other asset-intensive businesses. The company also provides software solutions for planning and forecasting electricity needs, including renewables. Ventyx was recently acquired by ABB, the global power and automation technology group
www.ventyx.com
Footnotes 1. FERC 2009 Assessment of Demand Response and Advanced Metering. 2. SCE CPUC Filing for Phase II Smart Meter Rollout 2007. 3. Unlocking the 53 Billion Savings from Smart Meters in EU, Ahmad Faruqui, Dan Harris, Ryan Hledik.
4. Smart Grid Proposal to DOE – PECO Smart Future Greater Philadelphia.
worldPower 2010
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