Energy Internet and Virtual Power Plants (VPP)
Last updated
Last updated
The Energy Internet weaves energy resources into a tightly interconnected network, much like the internet connects information and people. In this network, various energy resources such as solar power, wind power, and energy storage devices collaborate to create a more efficient, flexible, and sustainable energy ecosystem. This represents not only a technological leap but also our bold vision for the future of energy.
Virtual Power Plants play a key role in this Energy Internet. Imagine a power plant that doesn't physically exist but can aggregate dispersed energy resources through high-tech means, transforming them into a powerful force of electricity. VPPs leverage cutting-edge software and network technology to tightly integrate renewable energy sources, energy storage systems, and demand response devices—elements of the energy sector that are traditionally separate and independent—providing strong support for our power grids. This disrupts the concept of traditional power systems, bringing us a greener and smarter energy future.
Renewable energy plays a crucial role in addressing climate change. However, due to the instability of renewable energy sources, a smart and efficient system is needed to ensure the balance of energy supply and demand, which is the value of Virtual Power Plants. For example, in California, USA, a region exemplary for its use of renewable energy, the photovoltaic power generation can meet all the electricity needs of the area during certain periods. However, as shown in the following figure, the fluctuating nature of renewable energy sources has significantly impacted the stable operation of California's power grid. Additionally, the volatility of generation and consumption sides caused by renewable energy and extreme weather conditions has led to extreme electricity prices in power wholesale markets in places like the United States, Australia, and China.
A Virtual Power Plant (VPP) is created by integrating dispersed renewable energy resources and energy storage systems into a unified network, making the management and dispatch of energy more flexible and efficient. Home appliances like air conditioners, water heaters, electric vehicles, commercial lighting in malls, and power equipment in factories are examples of distributed energy devices that need to be linked to a virtual power plant. However, due to the highly dispersed nature of these devices and the lack of communication standards, VPP operators face challenges in connecting these long-tail distributed energy devices into a unified network. Establishing a global network that links these long-tail distributed energy devices would significantly boost the development of the virtual power plant market. It would also mean accelerating the integration of more renewable energy devices into the grid, hastening the realization of a zero-carbon society.
