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JINAN - China is developing virtual power plants to achieve energy savings and promote the transition to greener energy.
These virtual facilities act as "invisible" power facilities, bringing together various electricity users, distributed power sources, and energy storage providers through coordination to ensure a balance between power generation and consumption.
For wind and solar power generation, factors like the presence or absence of wind, varying wind speeds, and the intensity of sunlight all affect the amount of electricity generated, said Cong Zhipeng, deputy head of the power dispatch control center of the Yantai branch of the State Grid Corporation of China in East China''s Shandong province.
The intermittent, random, and fluctuating nature of these factors makes it more challenging to regulate the power system, Cong added.
With the rapid advancement of China''s new energy infrastructure, the proportion of installed capacity from renewable sources is steadily increasing, which also highlights the challenges related to balance and security within the electrical grid system.
By fully leveraging the regulatory potential of virtual power plants, the costs of operation are significantly reduced.
In a smart control platform for virtual power plants launched in August last year in Yantai, a large screen displays real-time monitoring of resource access, electricity load, and power trading data.
The 242,000-kilowatt capacity adjustable load resource pool, built by the Dongfang Electronics Co Ltd, has achieved interconnection with both State Grid Shandong Electric Power Company and the State Grid''s Yantai branch, said Dong Wenjie, head of the comprehensive energy business department of Dongfang Electronics Co Ltd.
As resources from various regions continue to be integrated, the orderly establishment of a 500,000-kilowatt adjustable load resource pool will be realized, Dong said.
According to a document released by the National Development and Reform Commission and the National Energy Administration in March, it is necessary to define market access, clearing, and settlement standards for distributed new energy sources, virtual power plants, and other new entities and formats.
Despite the lack of fully developed business models, government support and ongoing exploration indicate a promising future for virtual power plants, which will encourage greater participation from businesses and residents, thus aiding the transition to green energy, said Dong.
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Virtual power plants are poised for big growth to address challenges posed by increased grid-connected renewable energy systems, and contribute to China''s decarbonization goals, according to a recent report.
VPPs encompass networks of small energy-generating or storage devices, such as rooftop solar panels and batteries that are aggregated to connect to the electricity grid.
VPPs, by bundling together controllable loads and distributed energy storage sources, can supply immense power when demand for electricity exceeds supply. They play a critical role in reducing the power industry''s dependence on fossil fuels and ensuring energy supply when more power is generated from intermittent wind and solar sources.
According to a report by the Natural Resources Defense Council, a global environmental protection organization, China''s green commitment and rapidly developing new energy industry are fast-tracking the development of VPPs.
"With a higher proportion of power generated from new energy sources connecting to the grid, there is increasing demand for the power system''s adjustment capacity and safe operation, which needs clean, flexible and economically viable new entities to navigate these challenges," said You Mengna, deputy director of NRDC China. "VPPs are highly anticipated in this regard."
Sinolink Securities has forecast that the scale of investment in VPPs will touch 80 billion yuan ($11.24 billion) by 2025.
The industry has seen stronger policy support.
In 2021, an action plan by the State Council, China''s Cabinet, outlined that further efforts will guide VPPs to join the new type of power system, or the government''s initiative to promote the green and high-quality transition of the country''s energy system.
Last January, a plan co-released by the National Development and Reform Commission and the National Energy Administration called for actions to set up trial VPPs that integrate various types of energy sources.
Hu Changbin, director of the experiment center of the School of Electrical and Control Engineering, the North China University of Technology, said it is important to enhance basic control technologies for VPPs, develop VPP products with independent intellectual property rights, and improve communication technologies for efficient energy management.
The report also outlined a possible development path of VPPs. Till 2030, VPPs'' storage resources can combine with renewable energy sources for peak shaving and valley filling, which is an effective way to adjust the power load of the grid, it said.
From 2030 to 2045, it predicted that with VPPs aggregating a wider variety of power generation and storage resources, they can join both the centralized and distributed energy trading markets, as well as the power service market with higher capability of price negotiation.
From 2045 to 2060, as the grids'' capacity to integrate distributed energy sources improves, VPPs will engage in the power trading market or adopt localized consumption and regulation. Their energy storage sources will expand to a wider range of sectors such as hydrogen, it said.
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