The Rocky Mountain Institute has issued a new report intended to help utilities and utility stakeholders design and implement virtual power plants.
The RMI VPP “Flipbook” notes that in the face of mounting challenges from load growth and extreme weather, each year more utilities are developing VPPs to maintain and enhance grid reliability, resilience, safety, and affordability.
VPPs are grid-integrated aggregations of distributed energy resources such as batteries, electric vehicles, smart thermostats, and other connected devices.
RMI said that utilities use or develop VPPs to provide critical grid services in a rapidly changing power system, including:
- As an alternative to procuring energy, peaking capacity, or ancillary services from utility-scale resources;
- To alleviate stressed transmission and distribution systems;
- To support grid resilience, especially with increasingly dynamic and extreme weather patterns; and
- To add flexibility to integrate more renewable energy and decarbonize energy supply.
However, developing a VPP can be challenging, RMI notes. “VPPs often require the development of new program structures, customer engagement strategies, and ways of working with public and private partnerships,” the report said.
The flipbook features VPPs that provide 1,500 MW of capacity from 3.9 million enrolled customers.
Among the VPP profiles is one for California public power utility SMUD.
It contains four sections:
- VPPs and Their Benefits: An overview of VPPs, the benefits they can provide utilities and customers, and roles utilities play in VPPs.
- VPP Features: Profiles of VPPs from more than 15 utilities. Each profile includes background context, a program overview, impact, and lessons learned.
- Takeaways for Future VPPs: Leading practice for VPP design and utility practices.
- Appendix: VPP Comparison Matrix that summarizes and compares key metrics across programs, and overviews available tax credits to support customer DER adopt
The list of VPPs is not comprehensive, “but instead a useful start for utility program managers, grid operators, grid planners, and other stakeholders as they implement VPPs at their utility,” RMI noted.
