Virtual Power Plant as a Tool for Cost-Reflective Network Charging Tariff

Abstract

This paper presents a novel approach to applying the Virtual Power Plant (VPP) concept and for the Cost-Reflective Network Charging Tariff. The paper proposes an innovative energy trade concept based on current research and literature analysis. The technical novelty of the paper is motivated by reviewing the current developments in the Lithuanian renewable energy sector and related research on VPPs and cost-reflective pricing. The components of the VPP, including balancing of generation and consumption profiles, load forecasting, and solar generation predicted, are thoroughly described, along with a method for determining the network and VPP costs. An optimisation algorithm for cost optimisation is also presented. The paper concludes by demonstrating the implementation and operation of the EA-SAS Cloud Virtual Power Plant platform, which represents a significant contribution to the field of smart energy management.