Dive Brief:
Successful virtual power plants are reliable distributed resource aggregations that deliver targeted, predictable benefits for distribution or bulk power grids, a group of experts said Tuesday during a webinar organized by the Regulatory Assistance Project.
Utilities increasingly see VPPs as affordability levers, too, said Kevin Brehm, who manages RMI’s carbon-free electricity practice. On the bulk system, they can decrease power demand when wholesale prices are high and reduce both capacity and transmission costs; on distribution grids, they can free up load interconnection headroom and help reduce, defer or avoid incremental system investments, he said.
To scale customer participation in VPP programs and improve dispatchability, utilities and resource aggregators should provide robust and predictable compensation; use “revenue-grade metering” to measure performance and embed customer protections like penalty-free opt-out, said Bronte Payne, senior manager for policy at Sunrun.
Dive Insight:
