Leveraging Energy Storage for Microgrids and Virtual Power Plants

In an article for Distributed Energy Magazine, Guidehouse Insights discusses how energy storage enhances the economics for microgrids

Microgrids and virtual power plants (VPPs) are becoming more important for utilities as they make the shift from large, centralized power plants to smaller, smarter, and more sustainable distributed energy resources (DER) located at customer sites. Energy storage, specifically through advanced batteries, is emerging as a useful and cost-effective way to aggregate and optimize these two technologies.

In an article for Distributed Energy Magazine, Peter Asmus, associate director at Guidehouse, discussed why energy storage will play a vital role in the future of microgrids and VPPs, adding that energy storage is now the centerpiece of design for microgrids and VPPs because of its diverse capabilities, recent decline in cost, and increased performance.

"As costs continue to decline and performance continues to increase, virtually every microgrid and VPP will likely leverage the diverse capabilities of batteries," he said.

According to the article, VPPs in particular represent a major market, as they incorporate the proliferation of residential solar plus storage systems into DER fleets that provide grid services. Such services provide an antidote to the impulse among some customers for total grid independence.

"Microgrids and VPPs will overlap over time, and both prosumer and distribution utilities will see value in being able to improve onsite resilience and grid reliability from the same set of grid assets," Asmus said.

Read the Distributed Energy Magazine Article

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