Benefits of VPPs and energy storage
The adoption of VPPs and energy storage solutions offers several significant benefits, including:
- Enhanced grid stability and resilience: VPPs and energy storage solutions can help improve the stability and resilience of the electricity grid by providing grid services such as demand response, frequency regulation, and voltage control. They can also serve as a reliable backup power source during grid outages or other disruptions, ensuring an uninterrupted electricity supply for households and businesses.
- Increased renewable energy penetration: VPPs and energy storage solutions can facilitate the integration of renewable energy sources, such as solar and wind, into the electricity grid by mitigating their intermittent nature. By storing excess energy during periods of high generation and releasing it during periods of low generation, VPPs can help smooth out the variability of renewable energy and ensure a stable and reliable electricity supply.
- Cost savings and energy bill reduction: VPPs and energy storage solutions can help households and businesses reduce their electricity bills by generating and storing their own electricity and participating in demand response programs that incentivise electricity consumption during off-peak periods. VPPs can also provide revenue streams for participants by selling excess electricity back to the grid or participating in grid services programs.
- Environmental sustainability: VPPs and energy storage solutions promote using renewable energy sources, reducing greenhouse gas emissions and contributing to a more sustainable energy system. By optimising the generation and storage of electricity, VPPs can help reduce the reliance on fossil-fuel-based peaker plants, which are typically used during periods of high demand.
How a Virtual Power Plant VPP Australia | What’s a Virtual Power Plant (energymatters.com.au)
The Payback Project
An Ottawa Virtual Power Plant
Description:
A small demo of the Virtual Power Plant (VPP) concept, in operation at a home in Manotick for the past 7 years, has shown a payback of the capital cost of its solar and battery installation over that time. Its minimal energy costs were compared to the total energy costs of more than $38,000 borne by a similar “traditional” home serviced by natural gas and grid electricity.
Thus, the homeowner has avoided paying a similar $38,000 in energy expenses. Those savings will continue indefinitely into the future. And they will be magnified by the new Ultra Low Overnight rates now in force in Ontario. Capital cost recovery could be shortened to as little as four years.
A VPP is an interconnected wide network of energy sources (mostly solar generation) and battery storage. There are financial advantages to both its participants (home owners) and the electrical system. VPPs are established technology deploying rapidly in many places around the world.
The Payback Project is a VPP pilot to be located in an Ottawa community as a showcase for local power production. The long term intent is to foster the introduction of VPPs throughout Ontario to strengthen availability of electrical energy while reducing costs and greenhouse gases.
Benefits to Home Owners:
Participating home owners will achieve significantly lower electricity costs and have source of power in the case of grid outages.
Benefits to the Ontario:
Time shifting the draw of electricity from the grid from high to low demand times will reduce the need to construct new generation stations and to expand or upgrade the transmission system.
Benefits to the World:
Widespread use of VPPs would be a positive step in meeting climate change goals by displacing the burning of fossil fuels (gasoline and natural gas).
Finally, it is noted that Ottawa Renewal Energy Cooperative (OREC) will lead the development of the Payback Project Pilot in Ottawa. It has demonstrated its expertise managing many such renewable energy projects to the benefit of its shareholders. CACOR will remain a trusted colleague in this collaboration.
Leave a Reply