The southern region will launch virtual power plants to participate in electricity market trading.

So, as an “agent,” what resources can virtual power plants “represent” to participate in market transactions? The “Plan” clearly states that load-based virtual power plants aggregate all electricity generated by users with adjustable capacity (including user-side energy storage), and register in the market as electricity consumers. Generation-based virtual power plants aggregate distributed photovoltaic systems, decentralized wind power, and distributed independent energy storage facilities—resources connected at 380V/220V voltage levels—that have independent grid connection points, and register in the market using these generation projects as trading units.

Clean energy is helping the Greater Bay Area accelerate toward a green future. Photo/Liu Zhengfu

In other words, load-based virtual power plants aggregate adjustable resources on the user side and respond to grid demands by adjusting electricity consumption; generation-based virtual power plants, on the other hand, integrate distributed generation resources to provide electricity and ancillary services to the grid. A virtual power plant essentially aggregates dispersed adjustable resources into a unified entity that participates in electricity market transactions. For instance, a load-based virtual power plant can aggregate adjustable loads such as central air conditioning systems and charging infrastructure to participate in both the electricity energy market and the demand-response market; whereas a generation-based virtual power plant can aggregate distributed photovoltaic, wind power, and standalone energy storage resources to directly participate in either the electricity energy market or the ancillary services market. Li Chuanjian, Senior Manager of the Business Division at the Marketing Department of Guangdong Power Grid, China Southern Power Grid, explained with an example: “Both types of virtual power plants can fully tap into dispersed resources, thereby better achieving optimal resource allocation through market mechanisms.”

The “intelligent butler” of new energy—a new assistant for the power system

The primary characteristic of the new power system is its high proportion of new energy sources. The volatility and randomness inherent in these sources pose significant challenges to their integration into the grid at present. The significance of virtual power plants lies in their ability to more fully harness flexible regulation resources, thereby creating a new model of “source-load interaction.” “Therefore, the very purpose of virtual power plants is to achieve diversified aggregation of flexible resources on the user side, enabling real-time interaction between power supply and demand and enhancing grid reliability,” explained Li Haidong, Deputy General Manager of the Platform Division at Guangdong Power Grid Energy Investment Co., Ltd., Southern Power Grid, as he opened the Southern Power Grid Distributed Source-Load Aggregation Service Platform (shortened to “Yuenengtou”). On this platform, information about each device’s electricity consumption resources and load conditions is clearly visible at a glance. “‘Yuenengtou’ intelligently analyzes the adjustable capacity of each aggregated user-side energy storage site based on their real-time operational status,” said Li Haidong. “Once it receives a dispatch instruction, all these resources can work together in a coordinated manner to ‘come alive’ and meet the grid’s power balance requirements.”

Guangzhou Nansha Huangge Vehicle-Grid Interactive High-Power Rapid Charging and Discharging Demonstration Site. Photo/Zhu Yishun

From “relying on weather conditions” to “spot trading,” virtual power plants will become even more flexible in the future.