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Technologies Enabling the Virtual Power Plant

Technologies Enabling the Virtual Power Plant

Virtual PowerPlants(VPPs) are an aggregation of different distributed energy resources(DER), controlled to meet the demand and manage loads, especially during the peak hours. They solutions those make a VPP possible include, DERs, energy storage solutions and a control and aggregation solution. A Distributed energy resource management solution enables the aggregation of the DERs and controls them so that all the connected DERs can be operated and controlled as a single unit. It also helps in visualizing the operation of the DERs. However, in a VPP the visibility on the load side is also very important. This helps in determining the loading patterns and the actual demand scenario. Each of the enabling technology has an important role to play in a VPP. This study helps in identifying the technologies those form a VPP, why are they important, important projects related to VPP and the important stakeholders involved in developing solutions for VPP.


  • Executive Summary
    • Research Scope
    • Research Process and Methodology
    • Key Findings
  • Overview of a Virtual Power Plant: What and Why
    • Managing Peak Demand is One of the Major Reasons for Developing and Adopting VPPs
    • Solar, Storage, and Control Solutions are the Key Solutions Used in VPPs
    • Better Control over DERs in a VPP Help Optimize Performance
    • Microgrids are Used for Remote Power Options and Can Be a Part of VPPs
    • The Control of a VPP Can Be Centralized or Distributed
  • Technologies Enabling VPP
    • Microgeneration is a Major Technology for End-user VPPs
    • Distributed Solar is the Most Important DER in the VPP Scenario
    • Cost of Energy Storage Solutions is a Major Challenge that Has to Be Addressed
    • Microgrids Can Be Used as an Aggregated DER Solution to Power VPPs
    • Diesel Generators Market Has Been Facing Significant Growth as a DER Source
    • Operational Efficiency and End User Participation are Vital for VPPs
    • DERMs Platforms are the Brains Managing VPPs and their Performance
    • Drivers and Restraints: Urbanization and Demand Management Driving the Growth of VPPs
    • Drivers: End-user VPPs Can Help Mitigate Transmission Congestion and Losses Problems
    • Challenges: Developing Proper Regulations for Power Exchange and Export is a Major Challenge
  • Key VPP Projects
    • World's Largest Solar Storage VPP
    • VPP for Improving the Energy Reliability of New York
  • Key Stakeholders
    • Bosch Software Innovation GmbH: A software for the unification and management of DERS
    • AutoGrid Inc. : Helps utilities balance the grid in real time, reduce peak load, integrate RES and deepen customer engagement
    • Bule Pillar Inc. : The IoT platform that connects energy units with one network
    • Next Kraftwerke GmbH: Manages one of the largest VPP in Europe with 3.2 GW of networked capacity
    • Enbala Power Networks Inc. : More than 1000 DER units connected and controlled
    • EnerNOC Collaborates with Utilities to enable DR programs
    • Comverge Inc. : Distributed energy management via IoT in the offing
    • LightBlick SE: Smart networking of DERs, Storage units and Loads
    • Sunverge Energy Inc.: Cloud based platform for DER management
    • Vcharge Inc.: Transactive load based VPP
  • Growth Opportunities
    • Growth Opportunity 1: Creation of Strong Regulations Will Help Business Models Such as Prosumerism
    • Growth Opportunity 2: Participation of Industrial CHP Units Will Benefit all Types of VPPs
  • Technology Analysis and Analyst Insights
    • Solar and Gensets are More Advanced than Others
    • Integration and Clean Energy Status are Important Parameters for Determining the Technology Adoption
    • Solar is More Cost-effective Than Diesel Gensets by Close to 50%
    • Adopting Mixed Assets for Developing VPPs Can Help Improve Their Reliability
    • Combining Different Resources and Improving Divergence Can Enable Better VPPs
  • Key Contacts
    • Key Industry Participant Contacts
  • Key Patents

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