TECHNOLOGY FOR CHANGE

Intelligent Software Enables Creation of Virtual Power Plants

Salvatore Salamone | Date: 01-10-11 | Comments

Using intelligent software, some energy industry pilot programs are making more efficient use of their existing generation capacity, smartly integrating renewable energy generation and storage, and giving the customer a larger role in the prudent use of electricity. The true benefit of this approach is that it can potentially delay the building of new power plants even as energy demands go up in the future.

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Intelligent Software Enables Creation of Virtual Power Plants
Analogous to what happens when server virtualization software is used in data centers, smart utilities are turning to intelligent software to make more efficient use of their resources. The benefit for utilities conducting such efforts is that they have more available power capacity. In this case, instead of building a new power plant (or two) to get that additional capacity, the utility essentially has created a virtual power plant (VPP).

Work in this area is just beginning. However, in a recent study, market research and consulting firm Pike Research estimates that the global output from VPPs will grow to about 41 gigawatts by 2015.

A Duke Energy virtual power plant pilot project is testing the technology now. In the pilot, smart meters let customers monitor their daily electricity usage. They can then go online and create an energy profile. That profile lets customers specify if they want to throttle back energy usage in peak periods. If so, the customers can determine how they want to reduce power consumption. For example, they can opt to have their air conditioner thermostat adjusted or drier heat turned off automatically when energy demand is high.

According to the energy industry trade magazine Intelligent Utility, in its first year of operation, the utility saw 5 to 15 percent reductions in energy savings during peak periods.

Large-battery technology at Duke Energy's McAlpine pilot (source: Duke Energy).

Other elements of the Duke Energy VPP include solar panels and a large battery. In the pilot program, electricity generated by 213 solar panels at the McAlpine Creek substation can be put directly on the grid in high-demand periods, or stored to a 500-kilowatt battery if power generation is adequate to meet demand. This stored power can then be used when demand increases. More details about the Duke Energy VPP project can be found in this companion Smarter Technology video.

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