Nowadays, technological development is changing rapidly, and people’s lives are becoming richer and richer, with various technological products applied to life scenarios, such as the internet of things, smart homes, etc. Under that situation, the energy demand is increasing throughout society.
Electricity is critical to global economic progress and human well-being. Electricity demand has continued to expand over the previous decade, putting more strain on power networks and the global environment. Additionally, several nations have committed to presenting annual glasshouse gas reduction goals under the Paris Agreement, which makes distributed energy resources vital.
“According to a new report published by Verified Market Research, the Global Battery Energy Storage System Market is projected to grow at a CAGR of 16.3% from 2023 to 2030.The report reveals that the market was valued at USD 10.88 Billion in 2022 and is expected to reach USD 32.5 Billion by the end of the forecast period.”
Distributed energy resource is attracting more attention from governments worldwide due to its enormous resource potential, low environmental impact, and long-term viability. Renewable energy development and utilization have been critical to many countries’ energy strategies in recent years.
The application of Distributed energy resources is also being vigorously developed with the support of national governments, and a wide range of renewable energy generation equipment, both household and business, are being deployed around the world. At the same time, how to efficiently use these renewable energy sources has got researchers’ attention.
The distributed power generation technology represented by distributed energy resources has gained wide attention and rapid development because of its many reliabilities, economic, and flexibility advantages. The evolution of energy resources demonstrates a tendency towards clean and decentralized energy conversion.
Distributed energy is stochastic, intermittent, and fluctuating, it creates issues with the grid’s stability and reliability, such as tide changes, line congestion, voltage flicker, and harmonic impacts. Due to immature technology and expensive costs, economic issues also plague current grid-connected generation projects.
During the early years of the power system, conventional power generation was the primary component. Some conventional generating has been steadily phased out in recent years, driven by the energy shift. Distributed energy resource is gradually assisting the power grid and participating in the electricity market. Suppose a large number of randomly distributed energy resources and high-capacity loads are incorporated into the grid, and those distributed energy resources are controllable. In that case, therefore, the function of those distributed energy resources will be comparable to traditional generation or power plants. Additionally, some other technology like the microgrid has the same function, which can be used for distributed storage, load integration, and storage.
However, microgrids are constrained geographically and in terms of size in electricity systems and markets. As a result, the virtual power plant concept has emerged. The virtual power plant is widely regarded as one of the most practical and potential power management solutions, allowing for unique functionality by integrating embedded technologies and communication networks into power systems. Through a two-way energy flow, a virtual power plant enables tight collaboration and interaction amongst participants while providing real-time monitoring and energy conservation. Without the participation of a third party, this strategy enables consumers to trade extra electricity on the market at the desired price. On the one hand, producers that install small distributed energy resources can sell excess energy to the market because the scheduling algorithm maximizes their surplus energy.
On the other hand, customers without distributed energy resources or storage can participate through load shifting, peak shaving, and valley filling. Finally, virtual power plants can help to strengthen network security by optimizing operational scheduling to ensure compliance with energy management regulations.