Flexibility coordination mechanism between a distribution system operator and a virtual power plant involving wind parks and battery energy storage systems

Transition to clean energy along with the necessary increase of weather-dependent renewable generation can create bottlenecks in the distribution grid, since the generation in some hours exceed the hosting capacity of the grid. Decentralised clusters in the form of Virtual Power Plants (VPPs) can be constructed, in which the units are effectively coordinated and their operations are optimised towards their objective. These clusters can offer their flexibility services to distribution system operators (DSOs) to resolve bottlenecks. VPP structures with flexibility provided by curtailment of wind power generation as well as battery energy storage systems are analysed in a real distribution system. The simulations show that the VPP structures are effective in resolving anticipated bottlenecks in the analysed part-network to a significant degree. Profit-maximising behaviour of the VPP and the objectives of the distribution system can diverge. To align incentives, a potential coordination mechanism between a DSO and a VPP is illustrated.