As the climate crisis worsens, power grids are gradually transforming into a more sustainable state through renewable energy sources (RESs), energy storage systems (ESSs), and smart loads. Virtual power plants (VPP) are an emerging concept that can flexibly integrate distributed energy resources (DERs), managing manage the power output of each DER unit, as well as the power consumption of loads, to balance electricity supply and demand in real time. VPPs can participate in energy markets, enable self-scheduling of RESs, facilitate energy trading and sharing, and provide demand-side frequency control ancillary services (D-FCAS) to enhance the stability of the system frequency. As a result, studies considering VPPs have become the focus of recent energy research, with the purpose of reducing the uncertainty resulting from RESs distributed in the power grid and improving technology related to energy management system (EMS). However, comprehensive reviews of VPPs considering their formation, control techniques, and D-FCAS are still lacking in the literature. Therefore, this paper aims to provide a thorough overview of state-of-the-art VPP technologies for building sustainable power grids in the future. The review mainly considers the development of VPPs, the information transmission and control methods among DERs and loads in VPPs, as well as the relevant technologies for providing D-FCAS from VPPs. This review paper describes the significant economic, social, and environmental benefits of VPPs, as well as the technological advancements, challenges, and possible future research directions in VPP research.

This study proposes a double-stage double-layer optimization model for a virtual power plant (VPP) consisting of interconnected microgrids (IMGs) with integrated renewable energy sources (RESs) and energy storage systems (ESSs) to realize demand-side ancillary service, considering intra energy sharing among the IMGs within the VPP. In particular, the first stage, day-ahead scheduling, is carried out to predict the hourly electricity consumption baseline and regulation capacity for the next day, the latter of which results in a reward from the market operator. In the second stage, real-time power consumption control is performed by following the dynamic regulation (or RegD) signal. The second stage is further divided into two layers: the upper layer distributes demand response (DR) signals from the main grid according to the electricity unit price of each microgrid (MG) and exchanges electricity among MGs based on a new energy sharing mechanism to reduce RegD-following violations. The lower layer performs real-time power consumption control for each MG to minimize operation costs. The overall goal is to maximize the reward in the day-ahead stage and minimize the RegD-following violation penalty in the real-time stage, so as to minimize the overall operation cost of the VPP. The optimization is written in five objective functions, which are solved using mixed integer linear programming (MILP) in Gurobisolvers. Extensive simulation and comparison studies are carried out, and numerical results show that compared with traditional MG operations, VPPs comprised of IMGs can reduce operation costs and provide better frequency support for the grid through superior RegD signal following performances.

A comprehensive review of uncertainties in power systems, covering modeling, impact, and mitigation, is essential to understand and manage the challenges faced by the electric grid. Uncertainties in power systems can arise from various sources and can have significant implications for grid reliability, stability, and economic efficiency. Australia, susceptible to extreme weather such as wildfires and heavy rainfall, faces vulnerabilities in its power network assets. The decentralized distribution of population centers poses economic challenges in supplying power to remote areas, which is a crucial consideration for the emerging technologies emphasized in this paper. In addition, the evolution of modern power grids, facilitated by deploying the advanced metering infrastructure (AMI), has also brought new challenges to the system due to the risk of cyber-attacks via communication links. However, the existing literature lacks a comprehensive review and analysis of uncertainties in modern power systems, encompassing uncertainties related to weather events, cyber-attacks, and asset management, as well as the advantages and limitations of various mitigation approaches. To fill this void, this review covers a broad spectrum of uncertainties considering their impacts on the power system and explores conventional robust control as well as modern probabilistic and data-driven approaches for modeling and correlating the uncertainty events to the state of the grid for optimal decision making. This article also investigates the development of robust and scenario-based operations, control technologies for microgrids (MGs) and energy storage systems (ESSs), and demand-side frequency control ancillary service (D-FCAS) and reserve provision for frequency regulation to ensure a design of uncertainty-tolerance power system. This review delves into the trade-offs linked with the implementation of mitigation strategies, such as reliability, computational speed, and economic efficiency. It also explores how these strategies may influence the planning and operation of future power grids.

Energy is the foundation for human survival and socio-economic development, and electricity is a key form of energy. Electricity prices are a key factor affecting the interests of various stakeholders in the electricity market, playing a significant role in the sustainable development of energy and the environment. As the number of distributed energy resources (DERs) increases, today’s power systems no longer rely on a vertical market model and fixed electricity pricing scheme but instead depend on power dispatch and dynamic pricing to match supply and demand. This can help prevent significant fluctuations in supply–load imbalance and maintain system stability. Modern power grids have evolved by integrating information, communication, and intelligent control technologies with traditional power systems, giving rise to the concept of smart electric grids. Choosing an appropriate pricing scheme to manage large-scale DERs and controllable loads in today’s power grid become very important. However, the existing literature lacks a comprehensive review of electricity pricing in power systems and its transformative impact on shaping the energy landscape. To fill this void, this paper provides a survey on the developments, methods, and frameworks related to electricity pricing and energy trading. The review mainly considers the development of pricing in a centralized power grid, peer-to-peer (P2P) and microgrid-to-microgrid (M2M) energy trading and sharing, and various pricing methods. The review will cover the pricing schemes in modern power systems, particularly with respect to renewable energy sources (RESs) and batteries, as well as controllable load applications, and the impact of pricing schemes based on demand-side ancillary services (DSAS) for grid frequency support. Lastly, this review article describes the current frameworks and limitations of electricity pricing in the current energy market, as well as future research directions. This review should offer a great overview and deep insights into today’s electricity market and how pricing methods will drive and facilitate the future establishment of smart energy systems.

A comprehensive review of uncertainties in power systems, covering modeling, impact, and mitigation, is essential to understand and manage the challenges faced by the electric grid. Uncertainties in power systems can arise from various sources and can have significant implications for grid reliability, stability, and economic efficiency. Australia, susceptible to extreme weather such as wildfires and heavy rainfall, faces vulnerabilities in its power network assets. The decentralized distribution of population centers poses economic challenges in supplying power to remote areas, a crucial consideration for emerging technologies emphasized in this paper. In addition, the evolution of modern power grids, facilitated by deploying the advanced metering infrastructure (AMI), has also brought new challenges to the system due to the risk of cyber-attacks via communication link. However, the existing literature lacks a comprehensive review and analysis of uncertainties in modern power systems, encompassing uncertainties related to weather events, cyberattacks, and asset management, as well as the advantages and limitations of various mitigation approaches. To fill this void, this review covers a broad spectrum of uncertainties considering their impacts on the power system and explores conventional robust control, and modern probabilistic and data-driven approaches for modelling and correlating the uncertainty events to the state of the grid for optimal decision making. This article also investigates the development of robust and scenario-based operations, control technologies for microgrids (MGs) and energy storage systems (ESSs), and demand-side frequency control ancillary service (D-FCAS) and reserve provision for frequency regulation to ensure a design of uncertainty-tolerance power system. This review delves into the trade-offs linked with the implementation of mitigation strategies, such as reliability, computational speed, and economic efficiency. It also explores how these strategies may influence the planning and operation of future power grids.