ComTech Starts New VPP Research Project
Recent developments in the European energy system show a significant decrease in coal- and gas-based power generation and a concomitant increase in renewable energy sources. However, wind and solar power production exhibit natural fluctuations of volumes which need to be compensated for to ensure secure and balanced grid operations. This can be achieved by adding flexibility to the energy system based on power storage, investments into power grid and flexible consumption. This flexibility needs to be managed in real time to ensure grid balancing and effective use of resources.
There are multiple approaches to ensure sufficient flexibility and the solution likely lies in a combination of those. Among the most innovative are strategies related to energy storage, leveraging demand flexibility, and producing green hydrogen during periods of excess wind and solar power. Aggregating flexibilities from production, demand, and available power storage within a particular grid and trading this flexibility is the most straightforward way to accommodate fluctuations in renewable energy systems. This aggregated flexibility needs to be centrally controlled to be traded. In this case it forms a virtual power plant (VPP). Aggregated flexibility of both production and consumption can be utilized in markets such as ancillary services or wholesale markets or can also be provided to utilities, which can use this flexibility alongside their own resources. VPPs can be established in any grid and at any location and are poised to become a crucial component of future energy systems.
VPP technology needs multiple software tools for its implementation. Distributed energy resources need data monitoring, platforms for data aggregation, analytic tools for optimization of flexibilities and forecasting, as well as tools for bidding or communication with trading solutions, as well as redistribution of trading results and settlement.
ComTech has launched a project, led by Affiliate Analyst Irina Reitgruber, to conduct high-level research into industry sentiments around VPP technologies and approaches in order to gauge market interest in technologies and gain insights into which it will play a major role in the future energy systems. Additionally, the research will provide a better understanding what parties bring software solutions around such technologies. The project will focus on European market starting with countries of interest for the sponsors. The project comes on the back of a highly successful webinar conducted jointly with Narrativio GmbH called VPPs – Separating Facts from Fiction – this can now be viewed here.
Current sponsors include beacon Platform and Energy One with one r two more anticipated in the near future. If you are interested in sposnoring this research or in advertising in the final report, please contact us.
