Micro-grid shares all functions of VPP, yet it differentiates itself from VPP through some unique features.
1.Unlike VPP, micro-grid could be disconnected from the main grid and become the islands of power.
2.VPP covers wider space as it is flexible to expand or shrink the operating area, while micro-grid, on the opposite, has very defined network boundary.
3.Micro-grid can also serve the main grid yet its priority is to benefit its owners, and this makes it presents as an independent figure instead of a subsidiary of the main grid.
Generally speaking, when many DERs step into the energy market, VPP will be provided and promoted by energy providers and authorities to re-balance the grid frequency.
Then VPP may gradually develop to micro-grid to relief the energy pressure from the main grid as the idea of energy independence rises.
Energy storage plays a vital role within this process. DERs and VPP will have no feasibility without energy storage system which offers expanded energy capacity and flexibility of dispatching energy to different ends.