The Illogical and Logical Aspects of Digital Energy Stations
The energy landscape is undergoing a significant shift, with Virtual Power Plants (VPP) emerging as a promising solution to bridge the gap in energy storage. In California, the Moss Landing battery storage facility, operated by PG&E, has faced repeated fires, highlighting the need for alternative energy solutions.
VPPs are proposed to play a crucial role in this transition. They aim to simulate the effect of a regular thermal- or hydropower plant by aggregating disparate resources, including distributed energy storage and grid-connected batteries. A prime goal of the VPP system in California is to provide an alternative to expensive peaker plants, which are used to bridge significant spans of time when energy storage is insufficient.
PG&E and others in California have been testing VPPs, with a focus on home batteries for peak-shaving and compensating battery owners for withdrawn power. In a large-scale test, PG&E coordinated batteries in over 100,000 households with a combined capacity of around 535 megawatts. Other major companies and utilities operating virtual power plants include NRG Energy, Fluence (a Siemens and AES Corp. joint venture), and the California project integrates more than 100,000 home batteries.
However, the integration of these resources comes with challenges. Home batteries and BEVs are usually located on local distribution grids, making dispatching their power a challenge. To address this, initiatives like the Demand Side Grid Support (DSGS) program in California are hailed as a major revolution in the use of home batteries as a means to compensate for non-dispatchable, non-grid forming generation sources.
The European TSOs (ENTSO-E) are also focusing on eradicating 'dumb' converters and requiring grid-forming ones. This is to ensure a constant and careful balancing of the AC-based electrical grid to maintain current and voltage within acceptable ranges to prevent large-scale blackouts, as was evident in the 2025 Iberian Peninsula blackout caused by a failure to manage reactive power, resulting in widespread power outages in Spain and Portugal.
The future of distributed electricity generation is promising, with a recent study commissioned by the American Clean Power Association (ACP) predicting a 35-40% increase in electricity demand by 2040 in the US. To cater to this growing demand, a significant boost in non-dispatchable generators is projected by 2024 in the US.
Investors for variable generators may have to spend significantly more if every generator is required to have the ability to absorb and generate reactive power. However, if every wind and solar generator installation acts as a dispatchable generator with this ability, the VPP and grid-storage debates become irrelevant.
Vehicle-to-Grid (V2G) capable electric vehicles are also proposed to be part of the VPP system, providing additional energy storage. A VPP plan in Illinois targets larger commercial and community solar generators, offering them a rebate for installing a grid-following converter.
The Moss Landing battery storage facility, directly plugged into the big transmission lines, serves as a stark reminder of the need for alternative energy solutions. The VPP system, with its potential to revolutionise energy storage and distribution, is a significant development in this regard, as described in a report sponsored by Sunrun and Tesla Energy by The Brattle Group.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
- Abdominal Fat Accumulation: Causes and Strategies for Reduction
