In a 2023 Pathways to Commercial Liftoff report by US DOE, Virtual Power Plants (VPP) were highlighted as a lower-cost option for increasing grid capacity.
๐๐จ ๐ฐ๐ก๐๐ญ ๐๐ซ๐ ๐๐๐๐ฌ?
A VPP is a network of distributed energy resources (DERs) that are actively managed to optimize their operation for the benefit of the power grid, consumers, and the environment. Analysts predict a significant increase in DER ownership in the next decade. VPPs, already being implemented in the U.S. and globally, combine resources like rooftop solar, behind-the-meter (BTM) batteries, EVs, smart building systems, and flexible commercial and industrial loads. These aggregated resources can balance electricity demand and supply, offering grid services comparable to traditional power plants. VPPs allow DER owners, including residential, commercial, and industrial consumers, to participate in models that reward efficient grid operations.
A study by the Brattle Group reveals that Virtual Power Plants (VPPs) can significantly reduce the financial burden on ratepayers. Acquiring new peak capacity from a VPP consisting of residential smart thermostats, smart water heaters, managed EV charging, and behind-the-meter batteries can be up to 40% less costly for a utility than sourcing new capacity from a utility-scale battery and 60% cheaper than from a natural gas peaker plant (for a representative utility system in 2030).
๐๐ง ๐ญ๐ก๐ ๐๐๐, ๐ญ๐ก๐ ๐๐ฎ๐๐๐ข ๐๐ฅ๐๐๐ญ๐ซ๐ข๐๐ข๐ญ๐ฒ ๐๐ง๐ ๐๐๐ญ๐๐ซ ๐๐ฎ๐ญ๐ก๐จ๐ซ๐ข๐ญ๐ฒ (๐๐๐๐) ๐ก๐๐ฌ ๐ซ๐๐๐๐ง๐ญ๐ฅ๐ฒ ๐๐จ๐ฆ๐ฉ๐ฅ๐๐ญ๐๐ ๐ข๐ญ๐ฌ ๐ฉ๐ข๐ฅ๐จ๐ญ ๐๐๐ ๐ฉ๐ซ๐จ๐ฃ๐๐๐ญ, ๐ญ๐ก๐ ๐๐ข๐ซ๐ฌ๐ญ ๐จ๐ ๐ข๐ญ๐ฌ ๐ค๐ข๐ง๐ ๐ข๐ง ๐ญ๐ก๐ ๐ซ๐๐ ๐ข๐จ๐ง. The R&D Centre has implemented the VPP by connecting real physical assets and managing them as a single mixed portfolio of generation and load connected to the grid. Through the VPP, DEWA has integrated DERs includingย EVs at the R&D Centre, two Battery Energy Storages with Sodium Sulfur (NAS) and Lithium-ion (Li-ion) technologies, a Chiller system at the R&D Centre, an Outdoor Testing Facility at the R&D Centre, residential PV inverters, A Smart Grid Station with Solar inverter & EV charging stations at the Smart Grid Station.
The total flexibility provided by the VPP in this pilot project is approximately 3.3 MW. This pilot demonstrates the potential of innovative and sustainable energy solutions and sets a precedent for future projects in the UAE and beyond.
Access US DOE report here: Pathways to Commercial Liftoff: Virtual Power Plants (energy.gov)
The Brattle Group Summary Report: Real Reliability: The Value of Virtual Power (brattle.com)ย
DEWAโs pilot PVV announcement: https://www.dewa.gov.ae/en/about-us/media-publications/latest-news/2024/07/dewa-completes-its-pilot-virtual-power-plant-project-the-first-of-its-kind-in-the-regionย
