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Optimizing Virtual Power Plant Management: A Novel MILP Algorithm to Minimize Levelized Cost of Energy, Technical Losses, and Greenhouse Gas Emissions

Author

Listed:
  • Alain Aoun

    (Département de Mathématiques, Informatique et Génie, Université du Québec à Rimouski (UQAR), Rimouski, QC G5L 3A1, Canada)

  • Mehdi Adda

    (Département de Mathématiques, Informatique et Génie, Université du Québec à Rimouski (UQAR), Rimouski, QC G5L 3A1, Canada)

  • Adrian Ilinca

    (Département de Génie Mécanique, Ecole de Technologie Supérieure (ETS), Montréal, QC H3C 1K3, Canada)

  • Mazen Ghandour

    (Faculty of Engineering, Lebanese University, Beirut 1003, Lebanon)

  • Hussein Ibrahim

    (Centre National Intégré du Manufacturier Intelligent (CNIMI), Université du Québec à Trois-Rivières (UQTR), Drummondville, QC J2C 0R5, Canada)

Abstract

The modern energy landscape is undergoing a significant transformation towards cleaner, decentralized energy sources. This change is driven by environmental and sustainability needs, causing traditional centralized electric grids, which rely heavily on fossil fuels, to be replaced by a diverse range of decentralized distributed energy resources. Virtual power plants (VPPs) have surfaced as a flexible solution in this transition. A VPP’s primary role is to optimize energy production, storage, and distribution by coordinating output from various connected sources. Relying on advanced communication and control systems, a VPP can balance supply and demand in real time, offer ancillary services, and support grid stability. However, aligning VPPs’ economic and operational practices with broader environmental goals and policies is a challenging yet crucial aspect. This article introduces a new VPP management and optimization algorithm designed for quick and intelligent decision-making, aiming for the lowest levelized cost of energy (LCOE), minimum grid technical losses, and greenhouse gas (GHG) emissions. The algorithm’s effectiveness is confirmed using the IEEE 33-bus grid with 10 different distributed power generators. Simulation results show the algorithm’s responsiveness to complex variables found in practical scenarios, finding the optimal combination of available energy resources. This minimizes the LCOE, technical losses, and GHG emissions in less than 0.08 s, achieving a total LCOE reduction of 16% from the baseline. This work contributes to the development of intelligent energy management systems, aiding the transition towards a more resilient and sustainable energy infrastructure.

Suggested Citation

  • Alain Aoun & Mehdi Adda & Adrian Ilinca & Mazen Ghandour & Hussein Ibrahim, 2024. "Optimizing Virtual Power Plant Management: A Novel MILP Algorithm to Minimize Levelized Cost of Energy, Technical Losses, and Greenhouse Gas Emissions," Energies, MDPI, vol. 17(16), pages 1-23, August.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:16:p:4075-:d:1457747
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    References listed on IDEAS

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    1. Jiaqi Liu & Hongji Hu & Samson S. Yu & Hieu Trinh, 2023. "Virtual Power Plant with Renewable Energy Sources and Energy Storage Systems for Sustainable Power Grid-Formation, Control Techniques and Demand Response," Energies, MDPI, vol. 16(9), pages 1-28, April.
    2. Ding, Bing & Li, Zening & Li, Zhengmao & Xue, Yixun & Chang, Xinyue & Su, Jia & Jin, Xiaolong & Sun, Hongbin, 2024. "A CCP-based distributed cooperative operation strategy for multi-agent energy systems integrated with wind, solar, and buildings," Applied Energy, Elsevier, vol. 365(C).
    3. Ju, Liwei & Tan, Zhongfu & Yuan, Jinyun & Tan, Qingkun & Li, Huanhuan & Dong, Fugui, 2016. "A bi-level stochastic scheduling optimization model for a virtual power plant connected to a wind–photovoltaic–energy storage system considering the uncertainty and demand response," Applied Energy, Elsevier, vol. 171(C), pages 184-199.
    4. Zhang, Tianhan & Qiu, Weiqiang & Zhang, Zhi & Lin, Zhenzhi & Ding, Yi & Wang, Yiting & Wang, Lianfang & Yang, Li, 2023. "Optimal bidding strategy and profit allocation method for shared energy storage-assisted VPP in joint energy and regulation markets," Applied Energy, Elsevier, vol. 329(C).
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