Transactive energy based on virtual power plant and ancillary services: A real case application in Brazil after the Law 14.300/2022

Abstract

This paper introduces a transactive energy model that incorporates a Virtual Power Plant composed of photovoltaic systems, batteries and hybrid systems within an ancillary services framework. In response to the enactment of Law 14.300/2022 in Brazil, which has led to diminished commercial incentives for the installation of Distributed Energy Resources, investors are compelled to explore alternative avenues to offset these losses. The paper explores the coordination of Distributed Energy Resources as a Virtual Power Plant for commercial purposes, simultaneously addressing technical challenges such as promoting voltage control, mitigating electric losses, and reducing power demand. Simulations conducted in this paper utilizing a real case system in Brazil demonstrate that the proposed approach holds promise. This is attributed to the flexibility afforded by charging the batteries, as well as the inverter's capacity in the Distributed Energy Resources to inject reactive power, thereby enhancing the overall value of the proposed business model. The simulations conducted reveal that economic benefits are notably attained by charging batteries during off-peak periods and discharging them during peak period. Furthermore, due to the significant integration of photovoltaic systems, charging during off-peak hours contributes to the mitigation of overvoltage issues and reduction of energy losses. It is important to highlight that, during peak periods, the optimization of commercial gains is contingent upon adhering to a prescribed 3-h limit for battery discharging. Notably, the prioritization of commercial gains during peak times has the potential to enhance power demand reduction, as evidenced in the case study presented in this paper.