This thesis is a feasibility study of avirtual power plant (VPP) in centralSweden and part of a project withInnoEnergy Instinct and STRI. The VPPconsists of a wind park, small hydroplant as well as solar photovoltaic andenergy storage. The 50 kVsubtransmission network was modeled inorder to evaluate the network servicesthat could be provided by coordinatingexisting distributed energy resources inthe network. Simulations where performedusing measured hourly variations inproduction and consumption of allnetwork nodes. The studied networkservices included both reactive andactive power control.The aim of this thesis is to evaluatethe potential contribution from the VPPfor capacity firming in order to allow abalance responsible party to meet placedbids on the day-ahead spot market,minimize peak load in order to reducesubscribed power, decrease networklosses, the contribution from reactivepower control using the power convertersis studied. Comparisons of the economicgains from spot and balance markets ofthe VPP distributed energy resources aremade for each operation case.Sponsor: InnoEnergy / InnoEnergy Instinct