Consumer-owned energy resources can deliver essential system services, respond to energy market price signals and deliver local network services, according to the fourth and final report on the Australian Energy Market Operator’s (AEMO) Virtual Power Plant (VPP) Demonstration.
Manager of Distributed Energy Resources (DER) Market Integration at the AEMO, Matt Armitage said VPPs were typically focused on coordinating DER like rooftop solar systems, battery storage and controllable load devices through the market.
Mr Armitage said the AEMO NEM Virtual Power Plant Demonstrations: Knowledge Sharing Report #4 demonstrated that VPPs were contributing to a positive consumer experience and delivering in power system security services.
“Evidence indicates that household batteries are highly effective at providing contingency Frequency Control Ancillary Services (FCAS), with VPPs supporting the power system during major contingency events in the National Electricity Market over the last two years,” Mr Armitage said
“VPPs in the trial have continued to increase market share of contingency FCAS, reaching three per cent of market share in April 2021, up from 0.6 per cent in April 2020,” he said.
“Consistent with previous reports, VPPs are also highly capable of responding to energy market prices in real time and can deliver local network services, at times delivering more than one service simultaneously.”
Mr Armitage said the Report also found that the rapid growth of DER and their role in Australia’s energy system opened the door to new types of cyber-security threats, which could ultimately pose a threat to power system security.
“It is imperative that DER devices and their interfaces are resilient to manipulation through their entire lifecycle,” he said.
He said the VPP trial had helped the AEMO develop a deeper understanding of the future capabilities required to facilitate a secure and operable power system with high levels of DER and was set to conclude this year.
AEMO’s 69-page Report can be accessed at this PS News link.
