The interconnected units are dispatched through the central control room of the VPP but remain independent in their operation and ownership. Here small-scale virtual power plants (VPPs) can balance renewable generation and consumption, and forecasting will help to steer consumers’ behaviors with what is commonly referred to as demand response.Ī VPP is a network of decentralized power generating units such as wind farms, solar parks, and combined heat and power (CHP) units, as well as flexible power consumers and storage systems. The local production and consumption of electricity should be encouraged. The capacity of the ultra-high-voltage transmission grid needs to increase, but at the same time, local and regional network solutions need to strengthen. There is not one single solution for this challenge. But climate change is causing more extreme temperatures, which adds to the increase in electricity demand. That means a transition to electrification in temperature control as well as in transportation. Electric heating and cooling can be more efficient than other options, depending on the geographic location and weather. The electrification of heating and cooling is happening concurrently with more substantial variations in temperature. But an EV charger draws a lot of power off the grid, and like behind-the-meter solar, grid operators do not know where EVs are in use or how many are on each distribution line. In fact, in some ways, the switch to EVs is going faster than the switch to renewables. The switch to renewable energy is encouraging a transition to electric vehicles (EVs). Renewable energy is increasing electrification and, therefore, electricity demand. At the same time, electrification has increased the demand for electricity, leading to an ever-steeper demand in the mornings and evenings, especially with the advent of e-mobility. The demand and consumption of energy has also changed remarkably.ĭecarbonization has led to a change in the demand curve-with less power required during the day. Managing the grid has become such a complex operation that more and more digitalization is necessary, and finally, autonomous systems will take over. Building and connecting this renewable infrastructure is not on its own enough to replace fossil fuels while maintaining the current standard of on-demand and reliable power.
#Define virtual power full
However, there is an advantage in looking beyond the basic requirements, as the changes in the energy landscape present a compelling opportunity to leverage the full benefits of digitalization.Ĭlean power generation like wind, solar, and hydro is cost-effective, and the penetration into the electricity generation landscape is growing. The priority now for grid operators is to control and optimize those systems reliably and profitably. The result is a complex operational environment where generation is shifting from bulk, centrally controlled power plants to distributed and weather-dependent sources. As the world moves further into the energy transition on the path to a low-carbon future, smaller and decentralized power generation units will dominate the market. However, one of the most significant factors driving change is the global move toward renewable and distributed power generation, which is severely disrupting the energy landscape. The move from a traditional grid to the new smart, decentralized grid with bi-directional energy and information flow has accelerated in the past couple of years due to technological innovations, cost reductions, new business models, and enabling policies. It’s changing how electricity is being generated, transported, and consumed. This, in turn, is driving a power grid transformation.
Greater urbanization, a drive for decarbonization, and the growing influence of digitalization are changing the way industrial goods are produced around the world, as well as how people are consuming and producing energy. Megatrends are disrupting the energy and industrial situation worldwide. This article explains how they enable utilities and aggregators to pool production from multiple plants and distributed sources, achieving the flexibility and scale needed to take part and trade in the electricity market.
Virtual power plants are becoming a driving force in the power sector.
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