Virtual Power Plants
Overview
Distributed energy resource aggregations, or virtual power plants, are emerging as a critical tool for achieving California’s greenhouse gas reduction goals. The necessary characteristics and services of virtual power plants will vary depending on grid needs, community and customer values, and operational feasibility.
To better understand virtual power plant functions and values, Silicon Valley Clean Energy and Gridworks released the Silicon Valley Clean Energy Virtual Power Plant Options Analysis to generate thoughts, ideas, and feedback on possible solutions and the path to achieving those solutions in Silicon Valley. Options discussed in the paper include Real-Time Pricing, Critical Peak Pricing, Demand Response Auction Mechanism, Load Shift Resources, and a Distribution Services Model.
