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What is a Virtual Power Plant (VPP)? What are the advantages?



In recent years, due to issues such as nuclear power plants, increased awareness of environmental issues, and electricity liberalization, we have begun to hear more and more frequently about how to save electricity and other power-related information. Among them, it is a typical term often seen in electricity-related fields.

  1. What is a Virtual Power Plant (VPP)?

Virtual power plant (VPP) refers to power generation equipment such as renewable energy and fuel cells, storage battery equipment that efficiently stores and uses electricity, and consumers (demanders) such as homes and factories that consume electricity, and refers to centralized control, specific areas. It can be said to be a smart city concept that expands the scale of so-called smart homes. It is called a virtual power plant because it is like a virtual power plant in which all equipment, including power generation and storage, is controlled within a certain area.

  1. What are the benefits of VPP?

Basically the same concept as the smart home (installing a household battery, etc.), and has the following advantages. For example, if electricity demand exceeds supply during a time when everyone uses a lot of electricity, such as during the day, demand response can be used to request power savings and reduce demand. On the other hand, during periods of abundant power supply, the generated power can be used more efficiently by storing it in storage batteries in the area, so that too much power is not wasted.

Moreover, what makes it more attractive than smart homes is that it can introduce renewable energy sources, such as solar power plants and wind power plants, which can only be introduced using a certain amount of land, making it more renewable.

Similarly, by integrating battery equipment over a considerable area of land, it can be said that it is conducive to improving the efficiency of electricity storage and taking safety measures in advance. Currently, VPP is in the early stages of demonstration testing, so there are many challenges to its widespread use, but it can be said that VPP is very attractive because of its potential to contribute to the environment and bring savings.

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