What is VPP (virtual power plant)?

Payable after the fact as a penalty when a power producer experiences a discrepancy between planned and actual generation values. VPP (virtual power plant) is a new concept of energy supply service which uses multiple distributed energy resources that can be remotely controlled by IoT equipment, and it works as one power plant.

When will Japan start implementing VPP technologies?

Through projects launched in the five‐year period from FY2016 to FY2020, Japan aims to establish VPP technologies for the control of capacity above 50,000 kilowatts and allocated budget of 4.1 billion yen for use in FY2018 (Figure 6).

Does VPP work in Japan?

The project to set up VPP in Japan delivered first positive results with regard to reducing imbalances and increasing economic efficiency.

What is VPP & how does it work?

VPP, on the other hand, is defined as “providing a function equivalent to that of a power plant by controlling distributed energy resources (DERs2) (including the control of reverse flows from DSRs) by DER owners or a third party” (see Figure 1).

What is next Pool VPP?

In its Next Pool VPP, more than 13,000 decentralized power generators and consumers are networked via a platform and can thus be controlled via the control system developed in-house. With a networked generation capacity of more than 10,000 megawatts, Next Kraftwerke helps balance frequency fluctuations in the grid.

When will solar photovoltaics become a VPP resource?

Solar photovoltaics for household use may begin to serve as VPP resources from around FY2019 when they begin to come out of the 10‐year FIT coverage period.