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This study analyzes the economic efficiency of the virtual power plant (VPP) model that aims to integrate a number of emergency generators installed at the consumer end and operate them as a single power plant. Several factors such as the demand response benefits from VPP operation and costs incurred for converting emergency generators into VPP are considered to assess the economic efficiency of the proposed VPP model. Scenarios for yearly VPP conversion are prepared based on the installed capacities of the emergency generators distributed in South Korea, while the costs and benefits are calculated from the viewpoints of participants and power companies in accordance with California Test Methods. Furthermore, a sensitivity analysis is conducted on the cost factors among those affecting the economic efficiency of VPP business because these two factors have a great impact on benefits.

Analysis of the Virtual Power Plant Model Based on the Use of Emergency Generators in South Korea