Deployment and Optimization of Virtual Power Plants and Microgrids

In Algeria, the government trend is towards the adoption of clean sources in electrical energy production due to the imoprtant solar and wind potential that is available in the desert. Virtual power plants (VPP) are modular designed entities based on software communication technologies which efficiently integrate, organize, and manage decentralized generation, storage, and consumption through a smart energy management system (EMS). VPP can only be created if there is a market to sell its power and services whereas microgrids (MG) can be created anywhere and are not market dependent. In this chapter, a description of VPP and MG is presented. The key components are described, and a comparative study is done to assess which option to adopt for the Algerian context. A review about the deployment experiences, trends, and operation optimization is presented. The aim is to assess how to deploy them in a collaborative way to fit the Algerian future energy sector perspective.