Discovered Markets works with businesses solving some of the world's most pressing problems. This blog is a part of a series of posts covering energy issues and what businesses are doing about it.
In our last blog, we discussed the air pollution issues in Asia and harmful effects of biomass burnings, vehicle emissions, and industrial discharge.
Today we are going to talk about one way to address those issues: virtual power plants.
What is a virtual power plant (VPP)? I’m glad you asked. It is a network of decentralized, medium- scale power-generating units such as solar PV (photovoltaic) cells, wind turbines, and hydroelectric plants. They provide the same services as a traditional power plant, but without the harmful effects.
Due to its flexibility and efficiency, the market value of VPP’s is expected to reach $5.9 billion by 2027.
Enbala, a grid management company, has an array of technological solutions which include virtual power plants that aim to assist energy retailers in efficiently managing their energy systems. They completed a VPP in South Australia that was capable of orchestrating a diverse range of residential, behind-the-meter battery storage systems through cloud-based control systems.
The use of VPP is expected to increase in the Asia-Pacific region as well.
Japan has one of the more decentralized power systems in the world. Singapore is the leading country in creating sandbox trials (i.e. isolated trials) for advanced demand response services in which consumers play a significant role in the operation of the electric grid by reducing/shifting their electricity usage during peak periods. China is the largest market for wind and solar energy (which is expected to grow from 8% to 48% of total generation by 2050).
In short, there is a huge environmental problem with a huge business solution, VPPs being only one of them.
In our next blog, we will discuss renewable microgrids and their efficiency of both energy and cost.