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A Virtual Power Plant (VPP) is a network of decentralised, distributed energy resources (DERs) that are aggregated and managed like a conventional large power generation plant.
Overview
A VPP uses advanced communication technologies and data analytics to manage, coordinate and control DERs under its portfolio. For instance, a VPP can:
- Direct the excess electricity generated from solar panels to be stored in battery energy storage systems (BESS) at another location for future use.
- Aggregate the stored electricity from BESS deployed at various locations to be injected into the grid.
- Adjust the charging speeds of electric vehicle chargers to reduce their electricity draw from the grid.
A VPP registers itself as a single power generator in the Singapore Wholesale Electricity Market and performs these services:
- Supply electricity to meet demand.
- Provide regulation services by adjusting its electricity use in real-time to balance the grid for stability.
- Provide contingency services by injecting electricity into the grid when there is a sudden loss of supply (e.g. power plant outages) in the power system.