Mushi, Aviti ThadeiMnkeni, Godwin ElinaziJusto, Jackson JohnMwasilu, Francis AvilusMwinyiwiwa, Bakari Mohamedi Mfaume2023-11-252023-11-252023-11-23https://doi.org/10.1016/B978-0-323-90989-1.00004-Xhttps://repository.udsm.ac.tz/handle/123456789/6058This chapter introduces the operations of a microgrid system in the presence of virtual power plants.Renewable energy sources (RES) in microgrids and virtual power plants are considered to be the backbone of these power systems. The RESs have been shown recently to reduce the costs per kWh by 85% in South Africa, some viability to electrify airport in Tanzania [1,2], and rural villages [2 4] Some reported case studies show that investing in the same project five years later has a great impact on running costs [5] and can improve electrification rates as some other technologies can [6 8]. The RESs in microgrid configuration are considered to be the most costeffective power solutions to meet the load requirements of people that live in rural areas [9,10].Book chapter