www.heatingandventilating.net


Left: Don Dulchinos, director at


the OpenADR Alliance


RENEWABLE ENERGY INTEGRATION


W


ith the market predicted to grow from $5.6 billion in 2025 to $39.5 billion by 2035, we are already seeing the benefits from


the growing capability of VPPs as grid resources. While first-generation implementations were through rooftop solar and storage, we’re now seeing more cross-DER (distributed energy resources) integration as companies develop technologies for solar system integration and AI-based predictive load balancing. As a result, we’re seeing interesting trends


emerge. VPPs are integrating EV charging and building management systems are being aggregated as VPPs. New use cases include grid-connected residential HVAC, while solar panel manufacturers diversify into VPP creation and management.


A new generation


The scope of resources being aggregated by VPPs is going well beyond the earlier generation of rooftop solar resources. In one example, managed EV charging providers are partnering or being acquired by leading rooftop solar aggregators and smart energy ecosystem providers, expanding the notion of what constitutes a VPP. This kind of partnership adds charging stations and the EVs to a pool of DER, alongside photovoltaics and the fast-growing Battery Energy Storage Systems (BESS) market. In turn, the BESS market as a standalone DER is developing in parallel with VPP innovation. Commercial building management systems is


also experiencing something of a renaissance, after having been a core part of the growth in the utility demand response market 10 years ago. Recent solutions focus on more seamless


integration between grid-interactive efficient commercial buildings and utility operations. One company installs a gateway, incorporating a small yet powerful edge computer in a building’s server room and connects to the controls network. The gateway identifies all connected devices using standard building OT network protocols like BACnet and Modbus. It then maps and classifies devices using a combination of AI and manual categorisation to enable data modelling that leverages trend data at 1-to-15-minute intervals, much more granular than first-generation utility time-of-use programs In the US, in the wake of the compensation rule changes for Community Choice Aggregators (CCA) in California in 2023, a reorganisation of the VPP provider market is starting to take shape. A new VPP project funded by the US Department of Energy is planning to use its status as a Community Choice Aggregator to demonstrate how CCAs can use VPPs to create new opportunities and value for the


VPP 2.0: The growing capability of virtual power plants as grid resources


Balancing supply and demand is vital for maintaining a reliable electricity grid. Virtual Power Plants (VPPs) offer an alternative solution to traditional approaches, enabling local grid operators to use energy flexibility to ensure a more stable electricity supply. Don Dulchinos, director at the OpenADR Alliance explains


buildings they serve, while enhancing grid reliability. Many established solar panel manufacturers


have been adding storage to their product portfolios, with an eye on the utility market. Several of the top manufacturers are now engaged in discussions as to how best they can connect and communicate directly with utilities as grid resources.


Renewables integration


Possibly one of the most important trends is the number of businesses entering the market with a new set of technologies and solutions to meet the challenge of integrating renewable energy into utility grids. Some examples include: The management of businesses engaged in


renewable electricity provided at scale, including the development, operation and management of renewable energy power plants, including solar power, wind power and hydropower generation. The development of energy management systems


encompassing solar and wind power integrated with energy storage battery systems. Integration of wholesale electricity purchases with non-fossil energy certificates to provide up to 100 per cent green electricity to customers. Provision of a VPP solution with a new type of photo-electric dispatch management and trading system. Development of a platform that will make it easier to adopt renewable energy (natural energy) as an alternative to non-renewable energy, integrating elements including photovoltaic modules, liquid flow batteries, and multi-function data collection equipment.


In terms of our own membership as an industry


alliance, VPP providers are among the newest and fastest growing market segments to join an existing base of energy flexibility providers, including demand response systems, smart thermostats, EV managed charging system providers, building management systems and many more.


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