Define virtual power software#
It is not a power plant in a physical sense, but an aggregator – specialized software enables automatized management of capacities, where it has to centralize, process and analytically display the data and enable the communication with the electricity transmission system operator.
Define virtual power free#
Free capacities like diesel aggregates are activated to boost production or, in the opposite case, a factory in the system can briefly stop working to reduce consumption.Īrtificial intelligence will have an increasing role in preserving the stability of the electricity system and the optimization of surpluses Its role is to help balance production and consumption.
The technology enables the operator to unify available electricity sources, but also to cut power use in case the grid is overburdened, like when a sudden change in weather conditions weakens output at solar parks and wind power plants. The definition is complicated for amateurs, so the event was organized to describe the concept to the public. The participants at a webinar on virtual power plants as a new factor in the energy market presented the concept of Croatia’s first virtual power plant, opened recently by KOER, and raised the issue of the rising number of households that have rooftop solar panels as well as battery systems big and small.Ī virtual power plant is a cloud-based distributed power plant that aggregates the capacities of distributed energy sources and enables an increase in electricity generation and trading and sales of electricity.
The country’s first virtual power plant, or aggregator, is now paving the way for bundling the geographically dispersed small power sources, while there will be other options for prosumers as well. Also, because VPPAs are purely financial transactions, they allow buyers that have highly distributed electricity load-or load in regulated markets-to meet their renewable energy goals quickly and efficiently.The law in Croatia allows households with solar panels to group and place excess energy in the market, though technical solutions are still too expensive. For example, Fifth Third Bank was able to meet its 100% renewable energy goal with just one VPPA. VPPAs are easily scalable and enable buyers to satisfy a large portion of their sustainability goals with a relatively small number of deals. The VPPA has enabled many companies to make quick and significant progress toward ambitious renewable energy goals. The virtual PPA has gained prominence in the past few years and is the fastest-growing transaction structure today, allowing smaller buyers and those companies without energy trading expertise to participate. The VPPA is purely a financial transaction, exchanging a fixed-price cash flow for a variable-priced cash flow and renewable energy certificates (RECs). Because the VPPA is purely financial, the buyer still needs to meet its electricity load through traditional channels-therefore, the VPPA means the buyer’s relationship with its utility at the retail level remains unchanged.įor background, the physical PPA was the dominant form of transaction in the early years of the corporate renewable energy market, as the companies procuring energy then typically had very large energy needs and were sophisticated energy managers in their own rights. Virtual PPA-Within a VPPA contract, the corporate buyer does not own and is not responsible for the physical electrons generated by the project.Depending on the contract structure, the buyer could also pay for transmission charges.
This transaction places responsibility on the buyer for monetizing/selling the electrons, which is typically achieved by selling them into the wholesale electricity market.
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