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Kerri Carnes, APS''s director of customer-to-grid solutions, said that getting this kind of granular control will be increasingly important as the utility''s share of smart-thermostat-enabled capacity grows from about 200megawatts as of this year to nearly 1gigawatt by the end of the decade.
"These are savings that flow to all our customers," Carnes said
Jeff St. John is director of news and special projects at Canary Media. He covers innovative grid technologies, rooftop solar and batteries, clean hydrogen, EV charging, and more.
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Real Reliability: The Value of Virtual Power provides an introduction to VPPs and models their value and performance versus conventional resource adequacy options. It compares the net cost of providing 400 MW of resource adequacy from three resource types: a natural gas peaker, a transmission-connected utility-scale battery, and a VPP composed of residential demand flexibility technologies. The study also identifies key near-term activities for enabling the deployment of VPPs, which currently are adopted well below their market potential.
“With the massive growth in consumer adoption of clean, flexible energy technologies that is expected over the coming decade, virtual power plants are no longer a virtual reality,” noted Ryan Hledik, a Brattle Principal and coauthor of the study. “There is real potential to leverage these technologies to improve reliability, enable decarbonization, and reduce costs to consumers. But barriers still need to be overcome.”
Key findings from the Brattle study include:
“Google already enables one of the largest virtual power plants in the United States by helping our thermostat users avoid carbon and earn rewards through the Rush Hour Rewards (RHR) program and our recently launched Nest Renew service,” noted Parag Chokshi, Director of Product Strategy and Operations at Google Nest. “We believe the continued growth and support of virtual power plants in the residential sector is crucial to continue building towards a decarbonized, reliable grid of the future.”
Real Reliability: The Value of Virtual Power was coauthored by Brattle Principal Ryan Hledik and Senior Research Analyst Kate Peters. They will present findings from the report at the 47th Annual Peak Load Management Alliance (PLMA) Conference in Memphis on May 9.
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Before diving into the technical details of virtual power plants (VPPs), let's take one step back and see how VPPs fit into our zero-carbon energy future.
This future, as I am sure you already know, fully depends on renewable energy supply and electrification of most sectors. The electrification leads to a large increase in the demand for electricity as electric vehicles make their way into every garage and heat pumps are installed in every home. Renewable energy supply from wind and solar on the other hand is highly intermittent, making it more difficult to deliver consistently on the huge energy peaks created by electrification.
The good news is that all the new Distributed Energy Resources (DERs) that we surrounds ourselves with, from EVs to thermostats and solar, can all be part of the solution. How? Via demand response. DR can balance energy supply and demand, making it possible to transition to a zero-carbon energy system without building out the grid for the highest peaks. It will also increase the mix of renewable energy, making it a clear win-win!
To be part of the demand response market you need to control a large energy load. This can be done either by owning a very large energy asset, like an industrial facility, or by doing something even more interesting - building and maintaining a Virtual Power Plant (VPP).
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