Table 1 Summary on the advancements of VPPs
Refs. | Year | Brief explanation | Challenges |
|---|---|---|---|
[33] | 1997 | VPPs idea was conceived in accordance with a flexible partnership between autonomous, market-driven enterprises for the provision of consumer-focused energy services | Limited technological capabilities |
[34] | 2003 | The idea elevated from the previous definition to a system that will effectively integrate the VPPs into the energy market using cogeneration units, small-scale RES and EMS | High cost of communication and control systems |
[35] | 2004 | A novel concept for providing heat and energy near the load involved grouping small generators | Â |
[36] | 2007 | VPPs were defined as a flexible mix of DERs that would aggregate numerous different DERs and produce a single operational file for control and management depending on the specifications of each DER | Reluctance to adopting the idea |
[37] | 2008 | The most efficient methods for integrating DERs into the power systems were frequently cited as VPPs and Microgrids (MGs), although they were distinct. Their differences will be discussed further in this paper | Regulatory uncertainties for grid integration |
[38] | 2009 | DG and controllable loads took part in grid operations in real time as part of an open electricity market. To increase their usability and manageability in the market, DERs were integrated into the VPP concept | Investors’ risk perceptions |
[39] | 2010 | At this turn, software applications were implemented for remote dispatch and optimization within a secured network | Data management and analytics |
[40] | 2011 | The advent of electric vehicles (EVs) paved the way for their incorporation into the VPPs DERs portfolio | Uncertainties with charging and discharging patterns |
[41] | 2014 | Considering both market prices and demand-side projections for energy, the concept of thriving VPPs allowed for a reduction in operational expenses | Market price volatilities |
[42] | 2017 | The idea was more widely used as a power source for distribution networks thanks to the cooperation of the transmission system operator (TSO) and distribution system operator (DSO) | Incorporating vast number of energy sources which causes grid disturbances |
[43] | 2018 | Financial gains have become very feasible for prosumers. To maximize financial gains for all system participants, VPPs were termed as a group of DERs that participated as a single entity in the energy and reserve power market | Market price volatilities |
[44] | 2019 | The growing use of DERs presented challenges to the grid. The stochastic nature of these DERs gained more traction and attention | Challenges with grid dependability |
[45] | 2020 | A framework for the Internet of Energy for the various stakeholders of the VPP | Cybersecurity threats, cost in technological upgrade |
2021 and beyond | VPP energy production optimization, increased profit margin, and the issue of cybersecurity are well established for further absorption of the VPP concept into the present-day and future energy system | Cybersecurity threats, market price volatility, scalability |