Virtual power plant enables increased share of renewable energy
To curb climate change and build a sustainable society, we need to increase the share of renewable energy production. Production volumes of renewable energy vary depending on the weather conditions, which is a challenge for the power grid’s stability. VIBECO’s solution to this is virtual power plant which can be used to maintain the balance of the electricity network through demand response, thus contributing to a more sustainable society.
The production and consumption of electricity must be balanced at all times to ensure disturbance-free power supply. The balance of the power grid can be maintained by temporarily increasing the production volume or by being flexible in terms of consumption.
To temporarily increase the production volume, there are reserve power plants in Finland the energy production of which is based on fossil fuels. Maintenance of these reserve power plants, which are started up occasionally, is expensive for society. It also causes emissions which could be avoided.
The balance of the power grid can also be maintained by being flexible in terms of consumption. Properties consume around 40% of all the energy consumed in Finland, which means that they have a great deal of flexibility potential. Industry and transport are the largest consumers of electricity, and as industry and transport become electrified, their flexibility is very important for the functioning of the entire energy system.
If properties and industrial facilities are connected to the energy system, they will be flexible in their electricity consumption, depending on the needs of the power grid, and help in avoiding starting up the reserve power plants. This way, emissions can be reduced and the share of renewable energy in the energy system can be increased. As a result, the whole society benefits.
Properties and industry to benefit from electricity market through virtual power plant
The virtual power plant service is a software platform developed by Siemens and produced by VIBECO. The service manages and controls the electrical loads of the properties and industrial plants connected to it. The virtual power plant itself is connected to Fingrid Oyj’s demand response market and trades in electricity loads.
The properties and industrial facilities connected to the virtual power plant, as part of the energy system, can promote a carbon neutral, sustainable future. Even the properties’ small electrical loads can be combined to achieve a load that is large enough to be offered on the flexibility market.
The transmission system operators, for example Fingrid in Finland, pay compensation for flexibility that benefits all the properties and industrial facilities included in the virtual power plant network. The virtual power plant service is an entirely new source of revenue for property owners, who typically receive investment or rental income from their properties.
Virtual power plant – the ecosystem is expanding
An ecosystem of companies promoting a sustainable future has been built around the virtual power plant, and it is growing steadily. Hundreds of very different types of consumption and production sites have already been connected to the virtual power plant service in Finland – including more than 250 properties and industrial plants. The more properties and industrial operators are involved in the virtual power plant, the more society will benefit. Join the pioneers!
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