“Virtual Power Plant,” Cutting-Edge Solution for Energy Security toward a Sustainable Carbon-Free Society
22 May 2025
As the world calls for clean energy, the transition from fossil fuels to renewable energy needs to be accelerated at full speed. Thai power system will never be the same – power users are no longer just consumers of power utilities but are turning into Independent Power Supply (IPS) producers. However, the IPS producers still need to maintain their grid connection, relying on the grid power whenever self-generation is unavailable. In the meantime, there are also Prosumers who generate electricity and sell surplus energy back to the grid. As solar panels get less expensive, the Prosumer keeps rising in number and spreading everywhere.
In addition to the widespread growth of prosumers, many more power sources are scattered across the country – more than we had anticipated, including solar power, wind power, hydropower, hydrogen fuel, biomass, biogas, battery energy storage systems, and Vehicle-to-Grid. Known as Distributed Energy Resources (DERs), these power generation sources will become the game changers that will reshape the country’s power system forever.
A New Kind of Power Plant… No Construction Needed
How great would it be if we could integrate small power sources into a single large-scale power source, enabling efficient management for the power system security? The Electricity Generating Authority of Thailand (EGAT) has, therefore, developed the Virtual Power Plant (VPP) platform that aggregates DERs to create a new power ecosystem and increase the flexibility of power management. Most DERs are renewable energy sources that fluctuate with weather conditions. As these fluctuations increase, the overall power system security may be affected. A VPP is formed by aggregating DERs across various areas, ordered by the Virtual Power Plant Control Center (VPPCC), to supply electricity to the system, operating as a single power plant.
The VPPCC connects to a VPP that aggregates various DERs. Through various communication technologies such as information technology and Internet of Things (IoT), the VPPCC can access data, including locations, types of generation resources, generating capacities, and load decrease potential. A VPP will aggregate numerous generating capacities of DERS for supplying electricity to the system and solving the main power grid’s issues. The VPP operation begins when the National Control Center (NCC) orders the VPPCC to dispatch a VPP to supply electricity aggregated from DERs during high-demand periods. The VPPCC may also order the VPP to reduce the load of power user groups under the demand response measure.This includes managing and reducing electricity used for electric vehicle (EV) charging, both at public stations and residential locations, as well as controlling EVs to feed electricity back into the grid, known as Vehicle-to-Grid (V2G).
Victual Power Plant that Brings Actual Benefits, Paving the Way to Green Energy for Many Countries
The VPP adoption not only saves several billion Baht of new power plant construction costs but also enhances the stability and security of the power system. It facilitates continuous and efficient energy management, lessens the risk of power outages caused by fluctuations of renewable energy, and creates an opportunity for retail power users to generate and sell electricity back to the grid. Besides, the VPP supports the country’s goals of Carbon Neutrality and Net Zero Emissions.
Many countries, such as China, have applied VPPs in the EV industry, enabling EVs to feed energy back into the grid. This VPP adoption helps revolutionize the national power grid, with the aim of replacing fossil-fueled power plants such as those powered by coal and natural gas. In Germany and Japan, VPPs are developed to connect with residential buildings and battery energy storage systems to ensure a stable power supply and increase the share of renewable energy deployment.
The VPP is an emerging technology that goes beyond being just a trend. It marks a significant shift in renewable energy management and the reduction of fossil fuel dependence and carbon emissions. While the VPP is becoming an essential part of the power system in the future, several challenges remain in terms of infrastructure investment, technological development, data security, and laws and regulations to accommodate this new type of power system. Once these requirements are met, this transition will pave the way for a future of reliable, clean, and sustainable renewable energy sources.