Tackling 3 key issues can help scale virtual power plants and spur a wave of benefits, analysts say

Herman K. Trabish | Source: Utility DIVE | Posted 04/19/2024

Virtual power plants can realize their full potential with improved control technologies, streamlined communications and customer-engaging compensation, utilities, providers and analysts agree.

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Virtual power plants (VPPs) are gaining traction as a key solution in the power system, with North America having over 500 VPPs by mid-2023. Estimates suggest their capacity could reach up to 160 GW by 2030, serving a significant portion of the projected U.S. peak load. However, challenges remain in scaling up distributed energy resource (DER) integration into VPPs, requiring technological advancements and improved trust from customers.

To address operational challenges, utilities like Pacific Gas and Electric and Rocky Mountain Power are implementing new systems and standards. Communication protocols like the IEEE 2030.5 DER interconnection standard are seen as potential solutions for enhancing national interoperability between DER and system operators to allow VPPs to reach greater scalability through standardized open communication protocols and DER registries.

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Source Link: https://www.utilitydive.com/news/virtual-power-plants-vpp-der-distributed-energy-resources-derms/713282/

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Tackling 3 key issues can help scale virtual power plants and spur a wave of benefits, analysts say

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