One of the major driving factors in the shifting of the present grid paradigm to an active grid network is the reliability and resiliency of the utility network. With hefty investment in the distribution network protection and maintenance, the reliability of the feeders is considerably enhanced; however, large numbers of outages are still occurring every year which caused major production loss to the manufacturing sector. In this paper, the role of the solar grid-based Virtual Power Plant (VPP) is evaluated in the state power utility for the reliability enhancement and cost minimization using a multi-objective model based on MILP optimization. A 90 bus industrial feeder having automatic reclosers, DER, and DSM is selected on which the MCS method is utilized for computing reliability indices using the utility reliability parameters. The value of reliability indices such as EENS is declined by 68% by utilizing the VPP scenario. These values of this reliability index are fed into the multi-objective model for cost minimization. After running the optimization, the results reveal that the operational and the annual energy cost are reduced by 61% and 55% respectively which advocates the VPP implementation in the utility network. Both modes of the Virtual Power Plant such as grid-connected and autonomous mode have been discussed in detail. Lastly, the results of the developed model with MILP are compared with the proprietary derivative algorithm, and it is found that the proposed MILP is more cost-effective. The overall results advocate the VPP implementation in the utility grid as the economical advantage is provided to both utility and the consumers in terms of reduction in EENS and energy charges respectively.
© 2022. The Author(s).