Cost–Benefit Analysis of a Virtual Power Plant Including Solar PV, Flow Battery, Heat Pump, and Demand Management: A Western Australian Case Study

Behnaz Behi, Ali Baniasadi, Ali Arefi, Arian Gorjy, Philip Jennings and Almantas Pivrikas
Additional contact information
Behnaz Behi: Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia
Ali Baniasadi: Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia
Ali Arefi: Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia
Arian Gorjy: Yaran Property Group, South Perth 6151, Australia
Philip Jennings: Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia
Almantas Pivrikas: Discipline of Engineering and Energy, Murdoch University, Murdoch 6150, Australia

Energies, 2020, vol. 13, issue 10, 1-24

Abstract: Achieving the renewable energy integration target will require the extensive engagement of consumers and the private sector in investment and operation of renewable-based energy systems. Virtual power plants are an efficient way to implement this engagement. In this paper, the detailed costs and benefits of implementing a realistic virtual power plant (VPP) in Western Australia, comprising 67 dwellings, are calculated. The VPP is designed to integrate and coordinate rooftop solar photovoltaic panels (PV), vanadium redox flow batteries (VRFB), heat pump hot water systems (HWSs), and demand management mechanisms. An 810-kW rooftop solar PV system is designed and located using the HelioScope software. The charging and the discharging of a 700-kWh VRFB are scheduled for everyday use over a year using an optimization algorithm, to maximize the benefit of it for the VPP owners and for the residents. The use of heat pump HWSs provides a unique opportunity for the residents to save energy and reduce the total cost of electricity along with demand management on some appliances. The cost-and-benefit analysis shows that the cost of energy will be reduced by 24% per dwelling in the context of the VPP. Moreover, the internal rate of return for the VPP owner is at least 11% with a payback period of about 8.5 years, which is a promising financial outcome.

Keywords: photovoltaic generation; virtual power plant; flow battery; distribution network; heat pump; demand side management; lifetime economic analysis; cost–benefit analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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