The opportunities for future virtual power plant in the power market, a view point

The share of distributed generator (DG) in the power system generation is increasingly grown up. Due to the effects of DG on technical operation of the network and also considering the rapid extension of power market in the world wide, it is necessary to contemplate both technical aspect of network operation and market transactions in DG operation. Through the concept of virtual power plant (VPP), an aggregation of distributed energy resources that communicate with decentralized energy management system, the technical aspect of operation will be covered and participation of DG in the power market will be facilitated. This paper is concentrated on market aspects of operation of DG. A general framework for future VPP is discussed which it can be included the various DG technologies in both medium and low voltage distribution networks. New market transactions at distribution level, distribution company (DisCo) market in which both energy and ancillary services can be traded, is discussed and participation of VPP in both DisCo and wholesale market is investigated. Moreover, the exchanging power between wholesale market and DisCo market is briefly discussed.