May 25, 2020
Virtual Power Plants (VPP) — Architecture For Restructuring Power Distribution
The energy market is becoming more diverse due to the introduction of renewables. A more diversified grid allows the use of various power generating sources for consumers using Virtual Power Plants (VPP). It has been touted as the “Internet Of Energy” by Peter Asmus of Pike Research, because the architecture will be similar to the Internet — decentralized and dynamically configurable to react to the demands and needs for energy. This architecture consists of small units that form a larger system.
A VPP can consist of various microgrids which are independent power producers who feed power back to the grid, either from an excess of electricity or from an actual commercial energy production. A microgrid can also consist of a campus area network that produces its own energy using renewable sources. The excess power they produce would be shared to the grid via a VPP. The VPP directs the distribution of power using advanced sensor micro-controllers with software defined services that keep track of energy consumption. The VPP can then distribute power where it is needed from areas that produce more power than it utilizes.
Although VPP operate independently as decentralized units, they connect to a centrally controlled backbone for power distribution. A central control system implements special algorithms that anticipate the needs of the grid, and determine where to redirect power. Those units in a VPP can be the following:
- Power Producers (e.g. solar, wind, biomass, hydro, thermal, etc.)
- Power Storage Providers who use battery facilities to store energy either from renewables or excess from the grid
- Power-to-X Plants (e.g. power-to-heat, power-to-gas)
The power production from renewables are intermittent, so the use of batteries become very significant in operation. The energy the renewables produce can be stored in the battery facilities so that it is not wasted.
This can provide a solution to rolling blackouts in places where energy consumption have seasonal spikes. A good example of this is South Australia, where power becomes unstable during the hot summer months. When the grid hits capacity it can lead to blackouts for consumers. Tesla had stepped in to help by providing the South Australian government with a battery solution that can store energy from a wind farm, and utilize it for several hours until the grid returns to stability. The Tesla project was the largest battery installed, and had met the needs of providing backup power when it was needed. It was built to store up to 150 MW of storage from the Hornsdale Wind Farm. Using a combination of battery, renewables and grid can provide more stable power production.
In a VPP the source is not so much that important, but the delivery of power is. The VPP architectural model moves away from a monolithic to a more smaller and medium sized facilities for generating a similar or the same amount of power. For example a VPP can replace an inefficient 500 MW power plant, with a distributed microgrid that can consist of private and retail power producers using renewable energy sources. Another way VPP can help is to provide additional power for the grid when it is needed. All this will be managed by software through IoT and industrial system sensors.
A network of VPP interconnected across state or national boundaries can create a new energy trade model. Certain regions in the US can produce more solar energy than others. California and Arizona, where sunshine is more consistent, solar panels can gather more light to produce power that can be stored in batteries. The stored energy in excess can then be sold to other states where power demand is high. The market will determine the rate and a VPP can quickly adjust to the demand, making their operation more efficient.
In the past providing power to energy hungry customers required building a new power plant. That can be minimized by VPP, greatly reducing project costs and maximizing efficiency. There are success stories of VPP implementations like that in Yorkshire and the Tesla battery in South Australia, but overall deployments are still in development. Widescale adoption will be determined not only by its effectiveness, but by energy policy and demand.
