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Energy management will become efficient
In the system, devices such as air conditioners and electric water heaters will be collected from millions of households and managed with advanced technologies. Leveraging technologies such as big data, internet of things (IoT) and artificial intelligence (AI), this virtual power plant is especially effective during peak demand periods in summer and winter. will make load management more efficient. In addition, households will be able to benefit from financial incentives to the extent they adjust their energy consumption by participating in demand response programs.
According to the statement, when electricity demand is predicted to be high, the grid operator will send a notification to residents via mobile devices. Households will be encouraged to lower the temperature settings of high power consuming devices such as air conditioners to reduce their consumption and earn discounts on their electricity bills.
The effect of lowering the air conditioning temperature by one degree is 2.6 GW
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Unlike traditional physical power plants, virtual power plants optimize distributed energy resources and electrical loads by integrating them with digital technologies. This technology plays a critical role in the transition to a more resilient and sustainable energy system and is seen as a key component to achieving carbon neutrality targets.
In Jiangsu province, renewable energy capacity has surpassed coal-fired power capacity to become the region’s primary source of electricity. Officials also stated that future expansion plans of the virtual power plant will include home electric vehicles and charging stations. In this way, the flexibility and impact of the network will be further increased.
What is a virtual power plant (VPP)?
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This system, which makes it possible to operate independent energy production and storage systems such as solar panels, wind turbines, batteries and electric vehicles as a single power plant, uses smart software and IoT technologies to balance energy supply and demand. VPPs, which minimize energy losses by increasing efficiency, contribute to environmental sustainability and strengthen energy security by supporting grid stability. Virtual power plants, which play an important role especially in the integration of renewable energy sources, also provide economic benefits by allowing the excess produced energy to be sold at market prices.
For example, if you have a solar and battery system, signing up for a VPP can lower your energy costs. Because the utility company will provide you with cash payments when it uses your solar panels or batteries. Tesla demonstrated the clearest example of this. last year Tesla’s virtual power plantreduced the use of natural gas by providing 100 MW of power to the grid.
Source
https://www.ess-news.com/2025/01/16/china-launches-work-on-its-first-gw-scale-residential-virtual-power-plant/
https://www.torus.co/news/how-do-virtual-power-plants-work-the-benefits-to-homeowners-explained
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