Google, Ford, and General Motors, as well as solar energy firms SunPower and Sunrun, have joined a coalition formed by the non-profit organization Rocky Mountain Institute, which is focused on transforming the world’s energy system (RMI). This Virtual Power Plant Partnership (VP3) was established with the goal of standardizing and developing standards for virtual power plants.
Energy is gathered and distributed to grid-dependent consumers via virtual power plants. Consumers can change the energy demand and supply of things like EVs and EV chargers, smart thermostats and other home appliances, solar panels, and battery storage to relieve grid stress or serve as additional power sources. Decentralized distributed energy resources (DERs) are included in a portfolio.
All of these DERs essentially communicate with each other and the grid with the consumer’s consent. EVs might plan to charge for a later time during peak demand, or smart gadgets might add additional energy to the grid when supply isn’t keeping up with demand. Everything functions as a single massive, scattered power plant.
According to The Verge, this configuration can reduce the likelihood of power disruptions during periods of heavy energy demand. Virtual power plants can also reduce energy prices for consumers, increase the use of sustainable energy sources, and strengthen the grid’s resistance to adverse weather.
The industry for virtual power plants is expanding and has a lot of promise. RMI predicted that they could lower peak demand in the US by 60 GW by the end of this decade and by more than 200 GW by 2050.
According to Mark Dyson, RMI’s managing director for carbon-free electricity, “the next 12 to 24 months are vital for policy and program development to capture the possibilities afforded by virtual power plants, and VP3 is here to ensure that the energy transition doesn’t skip a beat.”
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Although the technology to create virtual power plants already exists, the group pointed out that the present obstacles to scaling up are legislation, laws, and markets.
Reuters stated that numerous locations, including Australia and Germany, have already benefited from virtual power plants. Customers in California have also escaped blackouts thanks to virtual power plants.
More communities might gain from expanding these systems. As a result, the coalition’s objectives are to compile, study, and disseminate the advantages of virtual power plants; create industry standards and road maps; and, finally, assist regulations governing virtual power plants in accelerating their expansion.
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According to RMI’s paper, Virtual Power Plants, Real Benefits, three major obstacles stand in the way of the long-term expansion of VPPs: wholesale market regulations, retail utility services, and consumer and policymaker awareness.
Once these fundamental obstacles are removed, more VPP companies will have access to steady utility or wholesale market income streams, and client acquisition and grid integration expenses will decrease. In turn, VPP companies will be able to offer both consumers and companies very enticing products.
