Groundbreaking trial shows how VPPs can pay for home batteries, slash costs on the grid
Network company Western Power says virtual power plants (VPPs) have “huge potential” to solve some of the grid’s thorniest problems.
VPPs could do away with the emergency solar switch-off button, and could remove the need for subsidies by helping batteries pay for themselves.
The observations have been gleaned from WA’s Project Symphony – a unique 2 year trial launched in 2021 to demonstrate how VPPs can support power systems and reward customers.
The pilot was centred in the Perth region of Southern River, where more than 50% of households have rooftop solar.
Overall, 514 customers and 911 assets were recruited to the trial across four main asset types – solar PV, battery storage, air conditioning and hot water systems.
The report confirms what we already know: that orchestrating DER can substantially reduce system costs and help alleviate local network constraints, passing lower costs to customers.
The WA government says there is around $920 million in value that could be created through home solar and batteries and other energy assets on its grid.
The report also underscored just how important home batteries will be for VPPs to access multiple revenue streams from the market and non-market services, in contrast to other DER assets.
Next to batteries, the most important thing is consumers – and getting them on board.
On both counts, Western Power’s Matthew Cheney says “relentlessly pursuing value for customers” will be essential to success.
And while the project used rebates to drive participation in the trial, Cheney doesn’t think government subsidies are necessary if VPPs are done right.