- The gigawatt-scale VPP project, launched by the Jiangsu Electric Power Company under the State Grid Corporation of China, will aggregate devices such as air conditioners and electric water heaters from millions of households.
- By leveraging advanced technologies like big data, IoT, and AI, the VPP will enable more efficient load management, particularly during peak demand seasons in summer and winter.
- Homeowners will be able to participate in demand-response programs and receive financial incentives for adjusting their energy consumption.
“When electricity demand is forecasted to be tight, the grid operator will send invitations to residents via their mobile devices, encouraging them to adjust the temperature settings of high-power appliances to reduce consumption and earn rewards on their electricity bills,” said Duan Meimei, head of the load management center at Jiangsu Electric Power Company, in an interview with Xinhua News Agency.
According to the company’s estimates, a one-degree Celsius adjustment in the temperature setting of a typical household air conditioner can reduce power consumption by approximately 0.06 kW. Given that Jiangsu has around 43 million household air conditioners, a one-degree adjustment could translate into a power change of nearly 2.6 GW.
Virtual power plants (VPP), unlike traditional physical power plants, use digital technologies to integrate and optimize distributed energy resources and electrical loads. They play a crucial role in the transition to a more flexible and sustainable energy system and are seen as a key component in achieving carbon neutrality goals.
As of October 2024, renewable energy capacity in Jiangsu Province has surpassed coal-fired power capacity, making it the province’s primary electricity source. Duan noted that future expansions of the VPP will include household electric vehicles and charging piles to further enhance its flexibility and impact on the grid.
This initiative is expected to significantly improve the efficiency of renewable energy generation and consumption in the region, contributing a sample to many other China provinces with more and more renewables.
Author: Vincent Shaw
This article was originally published in pv magazine and is republished with permission.
