Combinatorial Optimization-based Hierarchical Management of Residential Energy Systems as Virtual Power Plant

The supply-demand adjustment market in Japan will be opened in 2021, and it is expected to contribute to a virtual power plant (VPP) to gather distributed energy resources even from residential sector. The problem is to integrate residential sector that respond differently depending on the characteristics of each household, with keeping protecting consumer privacy. This article proposes a hierarchical management method that realizes VPP in residential sector. The proposed framework meets the requirements to join a market. The proposed method gets evaluated in numerical experiments. We aim to aggregate 1 MW controllable electricity with 4,000 detached household. The results show that the proposed method could achieve an amount of electricity of the procurement target in computing time of 10 minutes.