The wholesale electricity price usually fluctuates between 4c per kWh and 10c per kWh, but at different trading intervals within the year the price can jump much. While you have a fixed rate or fixed time of use rates for energy from your electricity retailer, the wholesale market is constantly moving. The most common and obvious source of revenue for a VPP is to sell power by discharging batteries at times of peak demand. This is currently under review, but as we speak the current options for VPPs to generate money are explained below. The playing field for VPPs is defined by the current regulatory system. Generally speaking a VPP is designed to create value for both the VPP operator and the participants in the scheme – usually through sharing of the financial benefits the VPP creates. Many of the VPP operators in Australia are also electricity retailers so they have access to the electricity wholesale market, however a VPP can operate independently of who your electricity agreement is with. The VPP operator centrally controls and monitors all the batteries within the network.

The group of interconnected solar and battery systems can perform services that help the grid be more stable and efficient. In this article, we’ll explain everything you need to know about VPPs and how it’s something you could benefit from in the future.Ī Virtual Power Plant or VPP is broadly defined as an interconnected and distributed network of a wide array of energy sources, predominantly solar and battery systems (This can include other energy sources such as gas generators and electric hot water systems among others). Some of you may have heard of the term “Virtual Power Plant” in recent years within the solar system and battery industry.

Goldencheetah virtual power