Distributed Generation and Virtual Power Plants

The paper describes the main characteristics of distributed generation (DG) and Virtual Power Plants (VPP). Distributed generation refers to the production of electricity near the consumption place using small-scale generating units. The distributed energy resources are renewable energies and cogeneration (simultaneous production of heat and electricity). A Virtual Power Plant is a cluster of DG installations (such as wind turbines, photovoltaic power plants, small hydro etc.) and any other sources of power that can cooperate together in the local area, and are controlled by a central control entity. The VPP is tested for different merit order values and grid connections (on-grid and off-grid) to track if this order is respected.