![]() Back in 2012, most VPPs did not include energy storage whereas today, storage is often viewed as a fundamental building block. Since I created that definition and published my first market forecast report, VPPs have morphed and matured and can now be found in nearly every part of the globe. They are dynamic, deliver value in real-time, and can react quickly to changes in customer load conditions.” VPPs maximize value for the end-user and distribution utility using a sophisticated set of software-based systems. Wikipedia quoted me back in 2012 shortly after I authored my first report on VPPs for Guidehouse Insights (then Pike Research): “Virtual power plants represent an ‘Internet of Energy.’” The entry goes on to state, “These systems tap existing grid networks to tailor supply and demand services for a customer. While no official government or industry definition exists today, here’s what I came up with about a decade ago:Ī VPP is a aggregated system of energy assets remotely and automatically assembled and optimized by a software-based platform to dispatch services for distribution or wholesale markets. With AEMO forecasting that Australia will need 15 GW of energy storage by the early 2040s and high uptake of DER already stretching the grid, technologies like virtual power plants are predicted to play an important role.Buzzwords are popping up in the new energy landscape, and chief among them is the term “ virtual power plant” or VPP. ![]() If all 19 million vehicles on Australian roads were electric, they would collectively supply as much energy storage as nine Snowy 2.0 pumped hydro schemes. Charged with renewable energy, the EVs will be connected to the grid for about 70 per cent of the time, providing backup power and discharging electricity to the grid, as well as storing excess renewable energy to help to stabilise the network. Their project has deployed 51 Nissan Leaf EVs with vehicle-to-grid capability, using the vehicles’ 40kWh batteries to deliver grid services. ![]() Nissan’s latest generation Leaf is equipped with vehicle-to-grid capability While household solar batteries are an early focus, the term ‘virtual power plant’ can refer to energy pooled from a wide range of energy assets or generators.Įlectric vehicles offer a significant opportunity, which is currently being trialled by ACT energy provider ActewAGL to provide FCAS to support the grid. Not just solar batteries…maybe a virtual power plant Households are rewarded for participating, generally through direct payments or bill credits. Through these projects, operators are able to remotely deploy energy from participating households for a range of services, like responding to energy shortfalls, providing frequency control ancillary services and network support. ![]() The technology is being rolled out across the country, through ARENA-funded projects like AEMO’s demonstration and Tesla’s South Australian virtual power plant. How do virtual power plants work?īy aggregating thousands of individual home batteries, virtual power plants allow renewable energy to be injected into the grid with lightning speed to address frequency and voltage imbalances, local disruptions or disturbances and keep the network stable. Virtual power plants are emerging as an important part of the mix, harnessing the collective power of Australia’s behind-the-meter energy assets. So to keep the grid balanced and ensure power is available whenever it is needed, network operators are looking for ways to store renewable energy. That’s a lot of energy – more than eight times the capacity of the former Hazelwood power station, or four times the capacity of the Liddell power station.īut naturally solar panels don’t generate electricity at night, and a grid with more weather-reliant renewable energy will have more variability. Home batteries are also growing rapidly, with more than 73,000 systems storing almost 1.1 GW of power. Obviously a single rooftop solar system and a home battery cannot do the job of a power station, but what about one thousand home batteries, or ten thousand… or a million? Virtual power plant maybe?Īre virtual power plants popular in Australia?Īustralians are world-leaders for rooftop solar, installing more than 2.5 million systems with a collective capacity of more than 10 GW. ![]()
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