What is a Virtual Power Plant and do I need one?
A Virtual Power Plant (VPP) is a series of connected home solar batteries that provides a way for homeowners to redistribute their excess solar energy to others who need it. They can help stabilise energy grids while rewarding participants with bill credits or cash rebates.
Virtual Power Plants (VPPs) have been around for a few years now, but they’ve recently gained a lot of attention due to the increase in energy prices, grid instability and extraordinary weather events in Australia and around the world. So what are VPPs, why are they exciting, and what could they mean for you and your energy needs?
What is a Virtual Power Plant (VPP)?
A Virtual Power Plant is a network of cloud-based connected battery systems that are centrally managed to maximize their efficiency and effectiveness. The VPP collects the energy from connected batteries and distributes it to meet demand when necessary. By having many different energy sources working together, the VPP can provide a stable and reliable energy supply not just to you and your local community, but to anyone connected to the grid.
When it comes to residential VPPs, the energy being provided and redistributed comes from rooftop solar systems on homes. The energy generated by solar systems and each household’s energy consumption varies day-to-day so batteries and VPPs help store (and when necessary, redistribute) excess energy for quite literally, a rainy day.
Benefits of a Virtual Power Plant:
- Increased Energy Efficiency: A VPP can optimize energy generation and distribution while reducing waste. This can lead to more effective use of the energy generated by your solar panels.
- Increased Sustainability: A VPP can help you reduce your carbon footprint and help integrate renewable energy sources into the energy grid, making the transition to clean energy smoother.
- Cost Savings: By using clean energy sources, a VPP can reduce energy costs and save you money on your energy bills.
- Reliable energy supply: A VPP can provide a stable and reliable energy supply, even during times of high demand or power outages — perfect for when the next wild storm rolls through town.
- Increased control: With a VPP, you can have more control over your energy use and generation, allowing you to monitor and adjust your energy usage as needed.
So, do I need a Virtual Power Plant?
Deciding whether a VPP is right for you comes down to your energy needs and goals. If you’re looking to switch to renewable energy, adding a home battery and VPP membership to your solar panel system can provide a more reliable and efficient energy supply to your home and others.
While a VPP may not be essential right now, it can be a great investment in the renewable energy industry and help you reduce your energy bills as those prices continue to rise. Additionally, many VPP programs offer discounts on battery installation, monthly energy bill discounts, and allow you to sell excess energy back to the grid.