The Australian Energy Market Operator (AEMO) is to run a trial project to see if it is possible to launch a Virtual Power Plant (VPP) system in Australia.
Funded by the Australian Renewable Energy Agency (ARENA), the 12-to-18-month trial will see AEMO install meters on rooftop solar, batteries and other controllable loads to see if they can be collectively managed and controlled to deliver services like a conventional power plant.
Chief Executive of ARENA, Darren Miller said AEMO would invite existing pilot scale VPPs around Australia to participate.
“Under the demonstration, participating VPPs will operate their portfolio of distributed energy resources to deliver energy, system security and local network support services,” Mr Miller said.
“ARENA’s funding will accelerate upgrades to AEMO’s systems and processes to allow smooth integration of VPPs before they reach commercial scale.”
He noted that while VPPs were currently operating at relatively small scale, AEMO had forecast that they could reach up to 700 MWs of capacity by 2022.
“AEMO needs visibility over VPPs and the ability to test how they operate within the market if we want to maximise the benefit both to consumers and to the system,” Mr Miller said.
“This trial will allow us to learn how to better integrate larger-scale VPPs in the coming years.”
