What is a Virtual Power Plant (VPP)?

School & Education / Sustainability by Tom Edwards


Even though UNIfied Energy Services is not a utility or energy retailer, an increasing number of our solar customers are asking the question “What is a VPP?”.  We are pleased to help, because we believe this is the next evolution of solar energy as we transition to a low-carbon future.

A Virtual Power Plant (VPP) is a system that allows multiple energy resources, such as solar panels, wind turbines, and battery storage, to be aggregated and managed as a single entity.

This aggregation enables utilities and energy service providers to balance energy supply and demand in real-time, resulting in a more efficient and reliable grid.

With the rise of rooftop solar systems, battery storage, and electric vehicles, VPPs allow households, businesses, and communities to:

  • Generate,
  • Store, and
  • Consume

their own electricity, while also providing more flexibility in how we use energy.

Tesla with support from the South Australian Government is developing a network of up to 50,000 home solar PV and Powerwall battery systems across South Australia – all working together to form the world’s largest virtual power plant.
So how does a VPP work?
  1. Aggregation: The VPP system aggregates the energy production and storage capacity of individual distributed energy resources (DERs) into a single, controllable entity.
  2. Optimisation: The VPP system analyses real-time data on energy demand, pricing, and availability of DERs to optimise the dispatch of energy resources to meet demand at the lowest possible cost.
  3. Control: The VPP system uses advanced algorithms and state-of-the-art communication technologies to control the dispatch of energy resources and ensure that supply matches demand in real-time.
  4. Monitoring: The VPP system continuously monitors and tracks the performance of individual DERs, the overall VPP system, and the grid to ensure that it is operating efficiently and reliably.
  5. Revenue generation: The VPP system can also participate in energy markets, selling excess energy generated by DERs back to the grid or providing ancillary services such as frequency regulation or voltage support.

Overall, VPPs are designed to optimise the use of renewable energy resources, improve the efficiency and reliability of the grid, and provide economic benefits to both energy service providers and customers.

Why UNIfied?

At UNIfied, we are here to ensure you can get the best out of your solar system and pay less for your electricity bills. We stand by the quality of our products and services.  In choosing UNIfied, you automatically benefit from our Solar Savings Guarantee program:

  • a 12-year product warranty
  • a 25-year performance guarantee, along with
  • a 5-year warranty on our workmanship

Contact UNIfied today or call 1300 817 847 to achieve greater savings in these precarious times, and start your journey of clean energy living!

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