• • • RENEWABLE TECHNOLOGY • • •
Do Virtual Power Plants offer an untapped opportunity?
Rolf Bienert, managing and technical director at industry alliance OpenADR Alliance, says balancing supply and demand are critical to maintaining a reliable power grid
V
irtual Power Plants (VPPs) could provide an innovative solution, enabling local grid operators to use energy flexibility to ensure a more stable electricity supply, improved energy efficiency and enhanced grid capacity. But what are VPPs? These are networked systems of decentralised energy or storage resources that can be pooled together to help power the grid – particularly when there’s peak demand. So, as we focus more on renewables and distributed energy resources (DER), VPPs are starting to attract more attention. Quite rightly, they can deliver value to customers, benefits to DER installers, grid operators and utilities.
The cost of implementing VPPs is likely to be much lower compared to traditional power plants as they draw on the capacity of a diverse range of energy sources, including solar, EVs, battery storage, smart plugs and thermostats. Controlled by grid operators or third-party aggregators, these can be monitored, forecasted, and optimised with bi-directional communications between components for a more efficient and resilient power grid.
According to market research firm, Research and Markets in its Virtual Power Plant Global Market Report 2023. Figures show that the global market for VPPs is expected to reach $5.04 billion by 2027 at a CAGR of 20.9%. As a global industry alliance, we can see momentum shifting, with many in the sector focusing on the adoption of advanced technologies and open standards. We also believe that partnerships will be key as utilities and energy providers, device manufacturers and others collaborate to turn homes, workplaces, and communities into VPPs.
Swell Energy is one example that’s already doing this to offer value to utilities and customers. With its large-scale operations, Swell Energy has made huge strides, creating VPPs by linking utilities, customers, and third-party service providers together, and by aggregating and co- optimising DER through its software platform. This is helping utilities to deliver cleaner energy to customers and reduce the grid’s dependence on fossil fuels.
One project in Hawaii, Swell is working with Hawaiian Electric, which represents a major
advance in aggregated battery storage management technology. It will co-optimise batteries in 6,000 different homes to create a decentralised power plant for the local utility on three Hawaiian Islands.
This will deliver 80 megawatts hours of grid
services using OpenADR based integration, including capacity reduction, capacity build, and fast frequency response to the island grids, while reducing bills and incentivising customers. This VPP tackles several challenges, driven by Hawaiian Electric’s need for energy storage and renewable generation through DER, along with capacity and ancillary services to ensure adequate supply and system reliability across its service territory.
It is also future proofing energy supply. Hawaii became the first US state to commit to generating 100% of its electricity from renewables by 2045, which means shutting down fossil-fueled plants and replacing them with more sustainable alternatives.
Swell Energy will supplement Hawaiian Electric’s energy supply by relieving the grids of excess renewable energy as production spikes and absorbing excess wind energy when needed, thereby reducing peak demand, and providing 24/7 fast frequency response to balance the grids. The renewable energy storage systems will collectively respond to grid needs dynamically. The model is a win-win, providing homeowners with backup power and savings on energy bills, while battery capacity is made available to the utility to manage the challenges of transitioning to cleaner energy sources. This requires balancing grid needs while ensuring customers are backed up and compensated.
VPP programs like these demonstrate how to balance supply and demand by adjusting or controlling load during periods of peak demand, conduct fast frequency response supporting overall health of the grid, absorb excess renewable energy for delayed consumption, and much more. There are only a few companies showcasing the potential of VPPs right now. But with the technology and standards to support already available, we can drive greater adoption and participation.
It’s never been more important as we look towards a more sustainable energy future. Utilities, energy providers and their partners must work together, while governments can drive change through regulation. We can then realise the full potential.
28 ELECTRICAL ENGINEERING • NOVEMBER 2023
electricalengineeringmagazine.co.uk
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