Energy Transition Handbook - Flipbook - Page 49
Energy Transition Handbook 2021
49
Aggregation and virtual power plants
Energy transition has created an intermittency challenge as large capacities of renewable
generation assets are added to the electricity system. It has also driven the shift from
large transmission connected centralised solutions to smaller more numerous
decentralised energy solutions. Those shifts provide a role for aggregation and virtual
power plants.
A virtual power plant uses wireless technology to
aggregate multiple electricity generation, storage
and demand assets and operate them as if they
were a single larger physical power station or
energy consumer. They bring natural benefits of
scale (both financial and risk mitigation) as well as
enabling the aggregator to access revenue streams
(such as in relation to grid ancillary services) that
are only available to larger generation assets.
Electricity networks are increasingly volatile and
virtual power stations serve to pool resources and
allow assets to be traded collectively in an attempt
to combat this risk.
In addition to operating every individual asset
in the virtual power station, the central control
system uses a special algorithm to adjust to
balancing reserve commands from transmission
system operators and to grid conditions – just as a
larger, conventional power plant does.
The virtual power station can also react quickly
and efficiently when it comes to trading electricity
and can generate revenue by helping to stabilise
the grid.
The rising numbers of EVs and of network hubs
and computer centres in response to digitalisation,
all require vast amounts of electricity. With
conventional power supplies, these demands
cannot be met sustainably. The hybrid and
decentralised approach of a virtual power station,
which utilises a wide range of technology and
energy sources, can provide low carbon flexible
solutions at scale to respond to this increased
demand and system volatility.
Virtual power stations do face some particular
challenges however, including the threat of
cyberattacks and the maintenance of security
and privacy of the mass data generated from
individual units.