Virtual Power Plant (VPP)
Definition:
A network of distributed energy resources (DERs) that collectively function as a unified power plant, optimizing energy distribution and grid stability.
Key Components:
- DER Aggregation: Combining solar, wind, battery storage, and demand response assets.
- Grid Integration: Managing energy flow between consumers, producers, and utilities.
- AI & Automation: Optimizing power dispatch in real-time.
- Market Participation: Selling excess power into wholesale electricity markets.
Use Cases/Industries:
- Utilities & Grid Operators: Managing load fluctuations with decentralized resources.
- Industrial & Commercial Buildings: Optimizing energy consumption and backup power.
- Renewables Integration: Enhancing grid reliability with distributed assets.
Advantages:
- Enhances Grid Resilience: Provides additional power supply during peak demand.
- Reduces Fossil Fuel Dependence: Enables higher renewable energy penetration.
Challenges:
- Requires Advanced Control Systems: Needs real-time monitoring and automation.
- Regulatory Uncertainty: VPP models depend on regional energy market structures.
Related Terms:
Distributed Energy Resources (DER), Demand Response, Smart Grid
Example:
A city-wide VPP aggregated rooftop solar, EV chargers, and batteries, reducing grid congestion and stabilizing energy supply.
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Synonyms:
Decentralized Energy Aggregation, Smart Grid Power Pool, DER Network
