A ‘Virtual Power Plant’ or VPP essentially represents an ‘Internet of Energy’, tapping existing grid networks to tailor electricity supply and demand services for a consumer.
A VPP can be defined as a system that relies upon software systems to remotely and automatically dispatch and optimise generation, demand-side, or storage resources (including plug-in electric vehicles and bi-directional inverters) in a single, secure web-connected system.
VPPs can provide extraordinary value and services to transmission and distribution (T & D) grid infrastructure, as well as revenue streams to myriad stakeholders engaged in the provision of electric power.
The VPP market is analysed by way of three primary segments: Demand Response, supply-side, and mixed asset VPPs, with the last segment representing the end goal of this entire market. Revenue forecasts, which track spending on software networking products and services, represent just over a $1 billion market today, but are expected to reach more than $5.3 billion over the next 10 years under a base scenario developed by Navigant Research.
This is what every energy business will most likely have in the near future – its own VPP. In the VPP model, Pearlstone Energy will utilise the internet to combine and aggregate the flexible load resource in a wide range of industrial and commercial facilities. Your facility will therefore become part of a VPP that saves energy and costs and generates revenue every time you are able to adjust when and how much electricity you use.
As a member of our VPP, your company will be helping to provide “equilibrium” in the UK’s electricity distribution system. This provides an economic benefit to UK plc as well as to your company and your clients.