Contrasting Microgrid and Virtual Power Plant Markets

In a Microgrid Knowledge article, Guidehouse Insights discusses why various regions have different preferences towards microgrids or virtual power plants

Distributed energy resources (DER) are playing an increasingly important role in providing energy services across both retail and wholesale markets.

In a Microgrid Knowledge article, Guidehouse Insights’ Peter Asmus, research director, discussed how DER platforms – microgrids and virtual power plants (VPPs) – are being utilized based on regional needs, focusing specifically on Europe, Japan, and Australia.

“The resources, regulations, and reforms that shape these markets explain differences between the drivers impacting microgrids and VPP uptake,” Asmus said.

He discussed why Europe is leaning towards VPPs due to its tightly regulated markets, Japan is now exploring VPPs because its power grids operate on two different frequencies, and Australia is a hotspot for both microgrids and VPPs with DER companies experimenting in different places across the country. 

“Both platforms are increasingly relevant as the world shifts toward greater reliance upon DER,” Asmus said. “Convergence between the two will likely increase as resilience rises in importance due to global climate change and as utilities and grid operators seek to find economic and reliability value in previously ignored DER assets.”

“For microgrids and VPPs, software platforms will hold the key to squeezing more value out of DER assets while also reducing costs for prosumers and the larger grid stakeholders who seek win-win scenarios,” Asmus said. 

Read the Microgrid Knowledge Article
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