Amidst tightening environmental policies worldwide, clean energy options such as solar, wind and geothermal – in lieu of carbon-based fuels – will eventually represent a large share of global energy needs. This is further driven by enterprises keen to enhance operational efficiencies while reducing environmental footprints. We expect to see more enterprises leverage on intelligent systems to provide intelligent energy management solutions.
As distributed renewable energy resources (DERs) provide an increasing share of the energy required in many countries, energy markets will begin to see a change from the traditional energy production model of centralized power plants towards the management of growing estates of DERs through Virtual Power Plants (VPPs).
White paper & checklist
"A new generation of Virtual Power Plants"
A new generation of VPPs will provide new capabilities for the future energy market as well as make it possible to offer new services and create new business models. But what are the key criteria that set next-generation VPPs apart from traditional ones? How does your VPP stack up? Find out now!
Just scaling up: not the answer
Deployments of VPPs have been in existence for more than three decades. However, Machina Research is starting to see, in Germany, Scandinavia, and North America, a new generation of VPPs emerging in response to changes in the energy market, new enabling technologies, and a realisation that just scaling up traditional VPP approaches will not address the requirements of customers.
Operators must prepare for the next generation
This analyst white paper aims to answer the key question: how are VPPs changing to meet the opportunities enabled by these transformations? Machina Research has identified three main types of VPP, examining 23 criteria for comparing different VPP providers in the market today.
Where is the demand coming from?
Environmental concerns, inefficient distribution networks resulting in higher costs for energy transmission, rising energy consumptions and increasing awareness by consumers with regards to differentiated energy pricing have also resulted in growing interest by public and private organizations to manage their energy demand more intelligently.
As a result, the traditional energy production model of centralized power plants are increasingly shifting towards the management of Distributed Energy Resources (DERs), which are smaller power sources that can be aggregated to provide power on a regular basis, through Virtual Power Plants (VPPs).
Key difference between traditional and new VPPs
The fundamental change between the two models is the shift from a single control room managed environment to a decentralized intelligent software managed environment, where the components of a smart energy market can take, interact and fulfill requests.