A Profit Driven Approach for Optimizing Virtual Power Plant Operations in Competitive Electricity Markets

Operation of generation resources linked to Virtual Power Plants (VPPs) during peak demand in a competitive electricity market play a vital role for determining the economic sustainability of the electricity market players. This paper presented a scheduling strategy driven profit based generation and explores the interaction with the electricity market to operate VPPs for system profits. Its main focus is to optimize economic returns and resource usage in a comprehensive and fair manner with discussing the generation of power to meet the 24-hour load demand with driving the profit for each DER according to their contribution. To evaluate the profitability of the proposed strategy, VPPs based system has been formed with the help of modified IEEE 33 bus distribution system considering numerous Distributed Energy Resources (DERs).