Building for the Future, Part II: Virtual Power Plants (VPPs)
Highlighting VPPs and their important role in “Building for the Future.”
Our 1.8 MW project with the New York City Housing Authority (NYCHA) at Queensbridge in Queens, NY. This project, along with others in our portfolio with NYCHA, participates in the NY-SUN and NY VDER Program, two New York State VPP markets.
Over the last nine years, Sunwealth has accumulated expertise in community-based solar and impact –financing and developing solar projects while delivering electricity savings, green jobs, and emissions reductions to communities across the country. But we know that accelerating the clean energy transition requires rejecting complacency. It requires scaling our impact through continuous advocacy, learning, and innovation.
In our new multi-part blog series, “Building for the Future,” we are highlighting the way Sunwealth is growing our impact through harnessing innovative climate-focused technologies, policy, and partnerships. In our second installment, we define VPPs, describe Sunwealth’s involvement in VPPs, and consider VPPs’ current and future role in the clean energy transition.
BUILDING FOR THE FUTURE
Part II: VPPs
To meet evolving energy challenges and reach a more equitable clean energy future, we, the Solar Generation, need forward-thinking policies, technology integration, and partnerships. In this second segment of our blog series, “Building for the Future,” we highlight how Sunwealth is accelerating the impact and growth of community-based solar plus storage through crafting our projects and project portfolios into Virtual Power Plants (VPPs). Below we explore what it means to be a VPP, Sunwealth’s experience with VPPs, and next steps for expanding VPPs and impact.
As Sunwealth talks about “Building for the Future” and the important role of our VPP strategy, we frequently get asked, “What is a VPP and how can I learn more about them?” Fortunately, the U.S. Department of Energy recently published a report that provides a great definition:
“VPPs are aggregations of DERs that can balance electrical loads and provide utility-scale and utility-grade grid services like a traditional power plant.”
The aggregation of DERs – Distributed Energy Resources – in a VPP could look like: a solar project and accompanying battery storage, electronic vehicles and bi-directional EV chargers, or smart water heaters and smart thermostats, for example. VPPs provide many benefits to the electricity grid, environment, and community that traditional power plants cannot. They can minimize transmission and distribution congestion, maximize resource adequacy and grid efficiency and reliability, and reduce emissions, while acting as a more cost-efficient and community-oriented resource than a fossil fuel power plant.
The DOE Report also outlines seven key values that VPPs provide to the grid and to communities:
Resource adequacy
Affordability
Grid reliability and resilience
Decarbonization & air pollution reduction
Transmission and distribution infrastructure relief
Community empowerment
Versatility and flexibility
Sunwealth has been embracing these VPP values for years and is continually working to expand VPPs’ reach and impact.
Our 26 kW project at Bethel AME Church in Boston, MA, which participates in ISO New England’s Forward Capacity Market (FCM). The FCM aims to bolster resource adequacy and capacity so that the grid is able to meet growing energy demands, even in scarcity conditions.
While the technology and markets are evolving, VPP is not a new concept for our electricity grid or Sunwealth. For decades, utilities have asked customers to reduce use during peak periods of electricity usage (e.g., hot summer days or freezing nights). Since 2017, Sunwealth solar projects have been participating in the ISO-NE Forward Capacity and NY-ISO ICAP markets to help reliably integrate more solar into our electricity grids. Sunwealth has 125 operational solar projects across four states participating in these capacity markets. The projects are located on a full range of sites from independent farms and elementary schools to houses of worship and brightfield projects (solar on landfills); and houses of worship (above). Sunwealth is also working with Consolidated Edison in NYC to test smart inverter settings at several of our solar projects with the New York City Housing Authority to both help regulate the grids voltage and allow for more integration of solar into the distribution system. We’ve prioritized incorporating our projects into VPPs because of their multifaceted impact: enabling more solar integration, more value for solar, and more impact (e.g., savings and green jobs) for our host community, installation, and technology partners.
Sunwealth has also recently partnered with SYSO Technologies to optimize the participation of our solar and solar plus storage projects in VPP markets. SYSO’s technical model allows us to identify VPP markets for asset aggregation and participation; streamline market enrollment; monitor, forecast, and control grid connected solar and solar + storage assets; and collect, communicate, and securely store real-time electricity market data.
Our solar project with the River Valley Co-op (RVC), the first project fully integrated with SYSO, provides an illustrative example of a VPP in action. Developed, designed and installed in partnership with Co-op Power, PV Squared, and Solar Design Associates, the project features a 169 kW rooftop solar installation and a 758 kW solar carport. These two arrays are complemented by 1,000 kWh worth of battery storage. The SYSO Technology Server and Platform optimizes the energy dispatch patterns of the battery energy storage system. As the DOE describes, the combination of the solar arrays and storage helps alleviate strain on the energy grid during peak demand, bolstering the grid’s resilience and efficiency. RVC is purchasing half of the energy produced on-site, and the remaining half will be allocated to low-income community solar subscribers in Pioneer Valley, many of whom are RVC members. The VPP at RVC, with some modest upgrades, can also act as a clean microgrid and back-up energy supply for RVC, which serves as a resilient community center during emergencies. Check out our blog to learn more about the project!
Sunwealth is thrilled that the U.S. Department of Energy is providing actionable information around VPPs. The report is a part of their series, “Pathways to Commercial Liftoff Reports” which began earlier this year as a part of their effort to reach net-zero emissions by 2050. These reports act as a living knowledge base for emerging clean energy technologies and provide analysis on how to accelerate the commercialization of these technologies. Check out some of the DOE’s other Liftoff Reports here.
As the DOE notes, VPPs have the potential to play a significant role in the clean energy economy, but much action is needed to accelerate “commercial liftoff” and maximize VPPs’ full potential. This will require expanding VPP adoption, simplifying enrollment, standardizing operations, integrating VPPs into wholesale markets, among other actions. Sunwealth is pleased to be supporting the liftoff of VPPs through building and optimizing our own VPPs with the help of SYSO, and authoring this knowledge source to help accelerate the broader public’s understanding.
When it comes to Virtual Power Plants, “Building for the Future” means working with values-aligned organizations and community members to employ renewable energy sources that are better suited to meet growing electricity demand and reduce emissions at the same time. VPPs are a crucial part of Sunwealth’s strategy for impact and growth, as they allow for real-time energy innovation while also building the foundation for a better energy future.
Interested in learning more about partnering with Sunwealth?