Production of energy in centralized power plants

and transmitted via transmission lines to the customers is

always with high power losses. Distributed generation

(DG) especially renewable energy resources (RES) and

energy storage systems (ESS) through distributed system

are very cost saving and sometimes inevitable. If these

small DGs want to connect to power system and participate

in energy market directly, both distribution and energy

market would have many problems with control such a high amount of information and small supplies of DGs. Application of virtual power plant (VPP) as an aggregation of some DGs with own local energy management system and some fix and variable loads is a suitable solution for DGs and networks problems.