NORTH AMERICA'S VIRTUAL POWER PLANTS
By KAREN MARCUS Freelance Energy and Technology Researcher and Writer
Final Draft Communications, LLC
ENERGYCENTRAL - Mar 21, 2022 - Utilities and power storage companies across North America are recognizing the value of virtual power plants (VPPs), which are collections of energy generation equipment at customers’ homes and businesses. VPPs provide benefits to all parties concerned. Customers get a cost-effective way to generate their own power, a source of backup power in the event of grid outages, and payment for power they send back to the grid. Utilities get help with delivering enough power during high-demand periods and with meeting their net zero goals. The following sections describe three such programs operating now.
Toronto Powerwall Virtual Power Plant Program
A Toronto-based provider of energy storage solutions operates a network of Tesla Powerwall batteries throughout downtown Toronto on a pilot basis. The program seeks to lower costs and improve resiliency, enabling customers to access reliable backup power during grid outages, better manage peak electricity usage, and monitor real-time energy consumption.Residential customers and small-commercial businesses located on a congested urban feeder are charged a one-time connection amount plus a monthly rental fee to participate in the program and get a Tesla Powerwall. The Powerwalls are charged with lower-cost off-peak electricity and used for power during peak times, lowering electricity costs.The batteries additionally deliver seamless backup power for appliances and devices in the event of an outage. They can also work in aggregate to help the broader electricity grid. Recently, a power outage lasting for nearly a full day impacted part of downtown Toronto. The Tesla Powerwalls enabled a seamless transition to backup power for over a dozen customers.The pilot has been a success, identifying the potential for home batteries to deliver customer savings on the Powerwall system as well as bill reductions, greater reliability, and GHG emissions savings.
Hawaii’s Battery Bonus Program
On the island of Oahu, Hawaiian Electric has partnered with advocates of customer-owned energy to pay households for using solar and batteries to provide power to the grid. The Battery Bonus program pays households an upfront cash bonus as well as a monthly electricity bill credit for adding a battery to their rooftop solar. In return, customers use the battery to store solar power during the day and send it to the grid during peak hours when more electricity is needed.Part of the impetus for this program is a plan to shut down the largest fossil-fueled power plant on Oahu in September. The island must create the resources to generate enough clean energy to meet demand.The program is set against the backdrop of Hawaii’s aggressive net zero plans. The state was the first to pass a law requiring it to move to 100 percent renewable electricity. It plans to do so by 2045. Other states may be able to learn from the Battery Bonus program, such as California, which has more rooftop solar and customer-owned batteries than any other state, making it a good candidate for a similar strategy.
Vermont Power Frequency Regulation Pilot Program
Energy utility Green Mountain Power (GMP) operates the Frequency Regulation Pilot program, which, according to GMP, “allows customers to share stored energy with regional grid operator ISO-New England (ISO-NE) to keep a steady, regulated flow of energy on the grid at all times.” The program is partly a response to requests from ISO-NE to energy producers to maintain a balanced flow of power on the grid.Like the Toronto program, the GMP program uses a network of Tesla Powerwall batteries to provide the wholesale power market with stored energy from customers. Those who already have two Powerwall batteries from a GMP program are eligible to participate. The program cuts carbon emissions and power costs, improves electricity delivery, and supports GMP’s 100% clean energy goal. In the future, GMP plans to expand the pilot program.
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