Battery Energy Storage System and Demand Response Based Optimal Virtual Power Plant Operation

Abstract

With certain controllability of various distribution energy resources (DERs) such as battery energy storage system (BESS), demand response (DR) and distributed generations (DGs), virtual power plant (VPP) can suitably regulate the powers access to the distribution network. In this paper, an optimal VPP operating problem is used to optimize the charging/discharging schedule of each BESS and the DR scheme with the objective to maximize the benefit by regulating the supplied powers over daily 24 hours. The proposed solution method is composed of an iterative dynamic programming optimal BESS schedule approach and a particle swarm optimization based (PSO-based) DR scheme approach. The two approaches are executed alternatively until the minimum elec-tricity cost of the whole day is obtained. The validity of the proposed method was confirmed with the obviously decreased supplied powers in the peak-load hours and the largely reduced electricity cost.