Concept of VPP-enabled DERs (solar-plus-storage)

The Virtual Power Plant (VPP) is aggregation of multiple Distributed Energy Resources (DERs). We focus on DERs that consist of mainly Solar PV and LFP Battery Storage, and that are installed behind-the-Meter (BTM) with intention to first meet on-site customers partial or full electric loads needs with renewables, and battery storage for emergency power backup to ensure a reliable business operations, balanced cost and benefits investment with more savings in electric bills, more revenue streams by providing grid services in electricity wholesale markets where reliability of electrical transmission grid is ensured as top priority while minimizing the operational cost. As a sustainable energy solution, the VPP-enabled DERs contribute greatly in decarbonization efforts, green-house gas (GHG) reduction as well as speeding up achieving the goal of 100% renewable for the state's electric energy supply. 

As the communication technology has advanced greatly with a reliable connection within affordable budgets, particularly in 3GPP standard Cat-M private LTE (pLTE) cellular wireless network for IoT applications, it is more feasible & affordable nowadays to integrate multiple DERs deployed in distribution grid levels and aggregate each DER's available dispatchable capacity and excess energy to provide grid services to wholesale electricity markets such as California ISO(CAISO), New York ISO(NYISO), Electric Reliability of Texas (ERCOT), and Mid-continent ISO(MISO).

While the self-usage of Solar PV generated energy can save greatly in electric bills, bridging via a VPP Market Interface and EMS platform, and depending on the structure and needs of the electricity markets, the aggregated DERs, i.e., the VPP, can also provide below grid services to electricity wholesale markets as envisioned in FERC Order 2222 released Sep. 17, 2020, and DOE's efforts in VPP commercial liftoff:

- Demand Response via a load reduction to relieve the generation supply to avoiding commit pricy peaker units and distribution feeder capacity from overload, providing benefits in deferral of electrical T&D infrastructure investment, which is valued most in capacity market typically for qualified market participants with large load demands. The VPP aggregates small capacity DERs and participates the market as a virtual large market participant with flexible supply and demand resources.  

- Ancillary Service(A/S) in frequency regulation, Vol/Var control to improved and maintain the power quality.

- Excess energy of solar or storage charged from solar can be exported back to grid as energy service in Dat-ahead market (DAM) or real-time market (RTM).

The VPP-enabled BTM DER (solar plus storage) is indeed a smart grid energy solution for our C&I customers to ensure a resilient power supply that withstands unplanned disturbances in the grid, and therefore more reliable business operations, energy efficiency improvement, more savings in electric utility bills, and to demonstrate a commitment in ESG  by adopting an eco-friendly, sustainable energy solution that elevates corporate branding and speeds up achieving the national goal of 100% electric energy supply with renewables by year 2050.