What is a virtual power station?

Animated GIF: The Virtual Power Station - click to enlarge and view animation. A virtual power station (VPS) links DERs – like rooftop solar PV panels – with energy storage and load control systems in a web-based network, to create a single reliable energy supply, much like a power station.

What are virtual power plants & how do they work?

What are virtual power plants and how do they work? A virtual power plant is a system of distributed energy resources—like rooftop solar panels, electric vehicle chargers, and smart water heaters—that work together to balance energy supply and demand on a large scale. They are usually run by local utility companies who oversee this balancing act.

Why do we need a Virtual Power Plant (VPP)?

VPPs are crucial for ensuring a stable and resilient electricity grid. They achieve this by connecting and intelligently managing distributed energy resources. Additionally, VPPs play a key role in integrating renewable energy, reducing dependence on fossil fuels, and offering new economic opportunities for both energy producers and consumers.

How is a Virtual Power Plant managed?

Managing a VPP requires precise coordination among multiple parties, including energy producers, grid operators, and sometimes consumers. Roles and responsibilities must be clearly defined, and strong collaboration is essential for maintaining the system's efficiency.

What are the benefits of a Virtual Power Plant?

The power of a Virtual Power Plant (VPP) lies in its use of smart technologies, such as: Thanks to these advanced technologies, VPPs can quickly and effectively respond to changes in both energy production and demand, resulting in a more stable, flexible, and sustainable electricity grid.

Can virtual power plants improve grid stability and reliability?

Virtual power plants (VPPs), integrating multiple distributed energy resources, offer a promising solution for enhancing grid stability and reliability . However, challenges persist in effectively managing the variability of renewable energy generation and ensuring grid stability . Existing research highlights several critical shortcomings: