Virtual Power Stations' Logic and Illogic Unraveled
The electrical grid, a delicate balance of power, is undergoing significant changes as we transition towards a more renewable energy future. In this evolving landscape, Virtual Power Plants (VPPs) and grid-forming generators are set to play crucial roles.
In California, the Demand Side Grid Support (DSGS) program is hailed as a major revolution, offering battery owners compensation for withdrawn power. This shift towards distributed energy resources is aimed at making every wind and solar generator installation act like a dispatchable generator, capable of absorbing and generating reactive power. If successful, it would render debates about VPPs and grid-storage obsolete.
However, grid-forming generators require local energy storage to absorb and produce reactive power. This is because the grid needs constant and very careful balancing to prevent large-scale blackouts. A prime example of this is the Moss Landing battery storage facility in California, operated by PG&E, which has unfortunately experienced repeated fires.
The idea behind grid-forming generators is to simulate the effect of a regular thermal- or hydropower plant with distributed generators and storage elements. This approach could potentially replace expensive peaker plants, as is the primary goal of the VPP in California.
Elsewhere, the European TSOs (ENTSO-E) are focusing on eradicating 'dumb' converters and requiring grid-forming ones. Companies like Hitachi Energy are investing significantly in advanced grid infrastructure and smart converters supporting grid-forming capabilities, essential for developing VPPs in the U.S. Green Rain Energy Holdings Inc. is also advancing projects integrating solar and next-generation energy storage systems that align with VPP concepts involving aggregated distributed resources.
In Illinois, a VPP plan targets larger commercial and community solar generators, offering a rebate for installing a grid-following converter. Meanwhile, a recent VPP in California has been running tests, focusing on home batteries for peak-shaving.
However, a study commissioned by the American Clean Power Association (ACP) predicts a surge in electricity demand by 2040, requiring a fast buildout of additional generating resources. The study concludes that home batteries and a handful of V2G-enabled EV cars may not be able to support this surge in electricity demand in a national VPP system.
Despite these challenges, the potential benefits of VPPs and grid-forming generators are clear. They offer the promise of a more resilient, efficient, and sustainable electrical grid. As we move towards a future with increased electricity demand, these technologies will be key to meeting our energy needs while minimising the impact on our environment.
One cannot forget the fallout of events like the fires at the Moss Landing battery storage facility, which are borne by the operator of the battery. The importance of safety and reliability in the implementation of these technologies cannot be overstated.
In conclusion, the future of the electrical grid lies in the integration of VPPs and grid-forming generators. As we navigate this transition, it is essential to balance the need for innovation with the necessity of safety and reliability.
