A Framework for Developing VPP Conceptual Models: From Multiple Dimensions and Stakeholders, Towards a Unified Perspective

Virtual Power Plants (VPP) are one of the most important concepts today for offering flexible control and management of distributed generation and load resources for supporting grid operation. By virtue of aggregating flexible negative and positive generation resources, or 'flex', into a single portfolio and offering it to entities who are customers of 'flex', the VPP needs to offer different value propositions to different customers. For utilities, cities, residential communities, industry parks, or clusters of small & medium enterprises, a VPP not only offers grid stability, new revenue sources, and a more sustainable and greener future, it also raises the question: How can different entities come together to foster the VPP concept and realize a common value creation network. This paper proposes a structured and methodical framework for evaluating the frame conditions, designing multiple VPP conceptual models for different value chain segments, and finally, creating integrated VPP conceptual models that can be used as starting points for detailed financial and operational planning.