AEMO Virtual Power Plant Demonstrations

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A Virtual Power Plant (VPP) broadly refers to a group of resources that are coordinated using software and communications technology to deliver services traditionally performed by a conventional power plant. In Australia, grid-connected VPPs focus on coordinating rooftop photovoltaic (PV), battery storage and controllable load devices.The Australian Energy Market Operator (AEMO) anticipates a rapid uptake of residential battery storage systems in the National Electricity Market (NEM), driven by a number of government incentives schemes announced in South Australia, Victoria, New South Wales and Queensland.As AEMO currently has no visibility of how VPPs operate, this project will test a new technical specification for VPPs to deliver Frequency Control Ancillary Services (FCAS) in the NEM, enabling VPPs to capture new value streams that could be shared with their customers.AEMO will also augment its systems to receive operational data from VPPs to observe their behaviour, including how VPPs respond to wholesale energy market prices or deliver local network support services.AEMO will use this data to improve its operational forecasting of VPPs, and identify further changes required to integrate VPPs into market frameworks at large-scale, including potential regulatory reforms.Key resultsVPP market participation and value stacking – This trial has observed VPPs delivering contingency FCAS, responding to energy price signals, and delivering local network services, at times delivering more than one service simultaneously. Small battery VPPs, like utility-scale batteries, have proven to be highly effective at providing contingency FCAS through various response methods.Develop systems that provide AEMO with operational visibility of VPPs – AEMO established a number of Application Programming Interfaces (APIs) to receive large amounts of continuous data, allowing deep, insightful analysis as shared in the various knowledge sharing reports. AEMO’s analysis of this data verified the ongoing need for operational visibility of VPPs as they reach material thresholds.Assess current regulatory and operational arrangements affecting VPPs – Insights from the VPP Demonstrations has informed the MASS Consultation , which is reviewing the appropriate measurement and verification arrangements for DER provision of FCAS, and will continue to inform other initiatives such as Scheduled Lite, the Data Communication Standard Consultation and the ESB DER Implementation Plan.Understand how to improve consumers’ experience of VPPs in future – A detailed Customer Insights Study was undertaken which identified that consumers’ ongoing satisfaction with, and advocacy of, VPPs will be further enhanced with improvements in initial and ongoing communications and transparency in the operation and earning potential of the VPP.Understand suitability of cyber security measures VPPs currently implement – VPPs are encouraged to engage in the Australian Energy Sector Cyber Security Framework (AESCSF) voluntary assessments and the ESB reforms that relate to cyber security, and to implement best practice cyber security frameworks in their system architectures.

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