Guest blogger Peter Asmus of Navigant Research writes about the evolution of the virtual power plant market in Australia.
Australian consumers boast one of the highest per capita consumption rates of electricity in the world (even greater than the U.S.). These consumption levels translate into flexible load resources ideal for aggregation and optimization into virtual power plants (VPPs).
What is a VPP? Think of it as a conglomeration of many distributed energy resources (DERs -- loads, but also generation, batteries and electric vehicles -- that can be combined into a pool whose sum of parts’ value is far larger than these DER assets offer individually. With sophisticated artificial intelligence software, these resources scattered across the grid can be combined “virtually” to provide the same services as a traditional 24/7 power plant -- but at much lower and environmental cost.
virtual power plant,
Opening the Distributed Energy Doors is a Win-Win
In November of last year, FERC issued a Notice of Proposed Rulemaking (NOPR) around electric storage resources. The goal was to better allow these distributed energy resources (DERs) to compete in the various wholesale markets. Per their November press release, FERC’s NOPR would require that RTOs/ISOs:
- Establish a participation model consisting of market rules that, recognizing the physical and operational characteristics of electric storage resources, accommodate their participation in the organized wholesale electric markets
- Define distributed energy resource aggregators as a type of market participant that can participate in the organized wholesale electric markets under the participation model that best accommodates the physical and operational characteristics of its distributed energy resource aggregation
distributed energy resources,