Flexibility Markets and their role in congestion management - VPP approach

Abstract

This thesis investigates the role of virtual power plants (VPP) in congestion management and electricity market. With the integration of more distributed energy resources(DERs), grid congestion has become a challenge for the power systems. The VPP control system is seen to improve the stability and efficiency of the grid by optimizing assets such as solar panels, batteries, hydro power generators and flexible loads. With a literature review and simulation using Power World Simulator and MILP in Matlab on an 18-bus system, this thesis analyzes how good VPPs can mitigate congestion by adjusting power flow and using locally distributed energy resources on the grid while making profit as a VPP. The simulation results show that during high demand periods the use of DERs reduces congestion on critical transmission lines, specifically on the branch between bus 13 and 14. Even without a proper robust optimization technique, the results suggest that VPPs improve grid reliability, give profitable operation, and are reducing the need for long transmission. This shows the importance of VPPs as a component in the power system becoming a smarter and more resilient system, and also recommends further research using a more robust optimization model for a better performance of a virtual power plant system.