jaue2021-067: Feasibility and Efficiency Evaluation of Virtual Power Plants —— A case study in Higashida Area, Japan

Abstract

As most of the distributed energy resources are available in urban areas, there are increasing interests in assessing
the potential to develop urban Virtual Power Plant (VPP). This paper aims to analyze the feasibility of VPPs through
the construction of local renewable energy and energy storage technology in Higashida area. The return on
investment was carried out through payback period and life cycle cost analysis. The economic performance of the
power plant side and the demand side by changing the investment from power plant side and the corresponding
electricity price on the demand side were analyzed. Result verify that total capacity formed by VPPs is 13,771kW,
and power plant side participate in VPP investment can effectively improve the energy self -sufficiency rate and
economic benefits of the entire region.