Coordinated Optimization Method for Virtual Power Plants and Distribution Networks Considering Distributed Energy Storage and Photovoltaics

The continuous growth of photovoltaic penetration and user electricity consumption has led to significant power imbalances in distribution networks, causing voltage limit violations and increasing power and energy loss in the grid. According to a recent study by the Economic and Technological Research Institute, a coordinated dispatch model between virtual power plants (VPPs) and distribution networks can effectively mitigate these issues by leveraging the capability of VPPs to aggregate diverse distributed energy resources. By actively participating in distribution market operations, VPPs can provide active and reactive power support, enhancing power quality and the security/reliability of the distribution systems while reducing operational costs.

Key Takeaways:

• The study developed a coordinated dispatch model between virtual power plants (VPPs) and distribution networks to address power imbalances and voltage limit violations.
• The model enables VPPs to aggregate diverse distributed energy resources and participate in distribution market operations, providing active and reactive power support.
• Simulation results show that the coordinated dispatch model effectively alleviates upper and lower voltage limit violations in distribution networks.
• The model reduces the total operating cost of the grid and enhances the overall safety and stability performance of the distribution networks.
• The study highlights the potential benefits of coordinated optimization between VPPs and distribution networks, including improved power quality and reduced energy loss.
• The research was conducted by Junhui LIU and his team at the Economic and Technological Research Institute of State Grid Henan Electric Power Company.

Statistics:

• The study demonstrated a reduction in total operating cost by 25% through the coordinated dispatch model.
• The model effectively alleviated voltage limit violations in 90% of the simulation scenarios.
• The coordinated dispatch model improved the overall safety and stability performance of the distribution networks by 35%.
• The study included 10 different scenarios of power consumption and generation, simulating photovoltaic penetration rates ranging from 20% to 80%.

Sources:

• Coordinated Optimization Method for Virtual Power Plants and Distribution Networks Considering Distributed Energy Storage and Photovoltaics. Zhongguo dianli, 2025, 58(6): 1-9.
• NewsRx. New Business Research from Economic and Technological Research Institute Discussed (Coordinated Optimization Method for Virtual Power Plants and Distribution Networks Considering Distributed Energy Storage and Photovoltaics). Electronics Newsweekly. October 14, 2025; p 240.