Virtual Power Plants: Latest Developments and Insights
The concept of Virtual Power Plants (VPPs) has gained significant traction in the energy sector, with the North Star Power Network providing updates on the latest trends and developments. Approximately 6,222 related results have been identified, reflecting the growing interest in VPPs.
Recently, the Xinjiang Electricity Market Regulatory Implementation Measures were officially published, clarifying the operational rules for the electricity market. Key players in this market include various types of power generation companies, electricity sales firms (including those with distribution network operation rights), electricity users, energy storage companies, VPPs, and load aggregators.
To meet the dual carbon goals, research is being conducted on the coordinated development of various grid forms, including the large power grid, distribution networks, and microgrids. This effort aims to ensure the safe operation and reliable supply of electricity while accelerating the clean and low-carbon transition of energy.
On March 18, Zhejiang’s Huzhou Wuxing District announced the winning bid for a VPP construction project, which involves the configuration of shared energy storage facilities with approximately 35 MWh of pre-installed battery capacity.
Moreover, on March 15, the construction of the largest “thermal power + molten salt” energy storage project in China was completed, marking a critical milestone for the Suzhou Power Plant. This project, developed by the State Energy Group Anhui Company, has now entered the equipment debugging phase.
In Sichuan, new regulations have been proposed to enhance the safety management of new energy and VPPs. These regulations include the integration of management platforms, distributed energy resources (such as distributed generation, energy storage, and adjustable loads), communication equipment, control terminals, and software/hardware necessary for grid dispatch and operation.
Looking ahead, the Vehicle-to-Grid (V2G) technology is projected to drive a dual incentive model for electricity markets and user benefits. If the peak and valley price difference exceeds 0.5 yuan/kWh, users could potentially earn over 2000 yuan annually, augmented by VPP aggregation and green electricity trading models.
On March 20, a seminar on smart distribution networks highlighted several key topics including innovative operating models for microgrids, collaborative development of energy, electricity, and carbon, and the role of VPPs in enhancing the quality of distribution networks.
In Inner Mongolia, efforts are underway to complete the annual electricity sales target based on a load capacity of 29 million kW. Market participants are encouraged to engage in demand response and to build a VPP operational management platform.
The Shandong Electricity Trading Center recently released an operation manual for the registration of VPPs, indicating continued growth and regulatory support for VPPs in the region.
In Yibin, Sichuan, a new 60 MW/120 MWh energy storage project has been launched, utilizing advanced lithium iron phosphate battery technology. This system is designed to enhance regional grid stability and support the efficient operation of “zero-carbon factories.”
Challenges remain in the integration of energy sources, grids, loads, and storage, with calls for dynamic policy adjustments, market mechanisms, and technological innovations to foster collaboration and development in energy systems.
As of March 20, Shanxi’s virtual power plant has a maximum adjustable load capacity of 256,300 kW, with significant trading activity reported since September 1, 2023. The trading frequency is set at 15 minutes, with a cumulative trading volume of 336 million kWh.
Looking forward, companies like Sunrun are set to deploy energy storage systems totaling 2.5 GWh by the end of 2024, focusing on residential solar and energy storage markets.
The dynamic interplay between computing power and electricity resources is expected to define the future of energy management, leading to more sophisticated and flexible energy services.
In conclusion, the development of virtual power plants is creating numerous opportunities and challenges in the energy market, paving the way for innovative business models and enhanced energy management strategies.
