Enhancing grid stability and sustainability through virtual power plants: A case study of Chile

The rapid growth of distributed solar photovoltaic ( PV ) generation in urban power networks has intensified challenges related to frequency stability, voltage regulation, and overall power quality, particularly in regions with high penetration of small- and medium-scale distributed generation ( PMGD ). This study evaluates the role of Virtual Power Plants ( VPPs ) as coordinated control mechanisms to mitigate these disturbances. A simulation-based framework is developed using representative operational data from ENEL Distribución Chile, combined with dynamic system modeling implemented in Python. Three operating scenarios are analyzed: (i) PMGD without VPP support, (ii) PMGD with integrated VPP coordination, and (iii) reduced PMGD capacity with and without VPP intervention. The analysis focuses on system-level dynamic response, including frequency, voltage, and phase behavior under high-generation conditions. Results demonstrate that VPP deployment significantly enhances grid stability, reducing frequency deviations from ±0.5 Hz to ±0.1 Hz and voltage fluctuations from ±5% to ±2%, while improving overall power quality metrics by approximately 80%. These findings confirm the effectiveness of coordinated VPP control in managing power imbalances and stabilizing renewable-rich distribution networks. The proposed approach provides a practical and scalable framework for integrating distributed renewable generation, offering insights for utilities and policymakers in Latin America and similar high-penetration contexts.