Operation optimization for a virtual power plant

In the 21st century the concept of electrical power supply is morphing gradually from centralized into decentralized system, indicated by increasing the Installation of distributed generation on the main grid. With emerging of advanced Communication and information technology, the aggregation of several small size, environmentally compatible, generators close to the loads can be developed as virtual power plant in order to provide added-value to the electric Power system. In this paper an operation optimization algorithm is proposed to integrate two DGs and a micro grid into a VPP control area, containing several loads, which will be able to generate and sell electrical energy to loads and power market. Suitable models are proposed to simulate electric production, and the energy exchange between VPP and Grid. The optimization problem is here formulated as a non-liner maximization algorithm with constraints, where the objective function is profit of the VPP with supply of electric energy for all the loads. Solving the VPP optimization problem in two different scenarios with GAMS software will complete the paper.