make a new-generation virtual power plant different from a traditional one.
What does a next-generation virtual power plant look like?
Virtual Power Plants (VPP) have been around for more than 30 years. Many operators are already aware that simply scaling up traditional VPP approaches will not be enough to meet the needs of customers and the market. A next-generation virtual power plant offers energy markets of the future numerous opportunities, especially for developing new business models.
Research and consulting company Machina Research argues that a new generation of VPPs is emerging in Germany, Scandinavia, and North America as a response to changing energy markets and new technological possibilities. Using 23 criteria to evaluate and compare various providers in the market, Machina Research identified three kinds of virtual power plants: from the control room to functional expanded VPPs to smart market enablers.
Yet what makes a smart market enabler – in other words, a next-generation VPP – special? And how are you positioning your VPP compared to that? Machina Research’s white paper answers the core question of what characteristics a next-generation VPP should have if it is to exploit the emerging market opportunities. With the accompanying checklist, you can see if your VPP meets the definition of a next-generation VPP.