Could virtual power plants help grid innovation?

Could virtual power plants help?

As US Infrastructure has said many, many times, the current US electrical grid is outdated and in need of serious investment and upgrade. While smart grids may be the future, with record investment in renewable energy even higher since the Gulf of Mexico oil spill, the grid still isn't ready for variable output from multiple energy generation technologies, but the answer could lie in virtual power plants, enabling a calmer transaction to a smart grid.

A virtual power plant is in essence a series of energy generating installations, ranging from wind-turbines to hydro-electric units, that are all run by a central control entity, allowing delivery of electricity at peak load times at short notice. By treating groups of dispersed power sources, such as solar and wind generators, as a single entity you could potentially solve the problem facing the grid at the moment, creating the "virtual equivalent" of a single large power station.

The main problem facing a potential smart grid is that energy generated from renewable sources can fluctuate, such as when the wind drops or when there is no sun. As such, energy generation won't match energy usage and power cuts are a result. However, with more and more countries switching to renewable energy, a solution must be found and 'virtual power plants' is the best thus fact.

A well-chosen mix of renewable sources such as solar cells, biomass-fuel station and wind turbines would be able to offset the inherent unreliability of different generators to make a virtual plant that can be treated much the same as a conventional one. A massive overhaul over current infrastructure would also not be needed.

American innovation

In the US, the California Independent System Operator (CAISO), the corporation charged with operating the majority of California's high-voltage wholesale power grid, is introducing a new program called Proxy Demand Response or Proxy DR into the wholesale California power market later in the year in order to allow companies to be generators of virtual power by reducing energy consumption at times of peak electricity demand.

In practice, a chain of grocery stores could commit to dimming lights in California stores at high use times to reduce their electricity needs, and receive compensation for their reductions. Those payments help them keep their operating costs down, which in turn benefit consumers through lower prices for products and services.

All of this could equate to massive national savings and benefits for the environment, with Jon Wellinghoff, Chairman of the Federal Energy Regulatory Commission, saying that if the numbers of power plants needed to meet peak demand can be reduced, it could save as much as 1.2 billion tons of carbon annually.

Relevant articles

America's outdated power infrastructure | Why the US needs a smart grid | GE CEO: Smart grid essential for US

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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