Sunverge, AGL to develop world’s largest Virtual Power Plant
Sunverge Energy is collaborating with Australia energy retailer AGL and the federal government’s Australian Renewable Energy Agency (ARENA), to develop the world’s largest Virtual Power Plant (VPP).
AGL Managing Director and CEO Andy Vesey said that the project is the world’s largest and a first-of-its-kind as an innovative solution that will help customers manage their energy bills and contribute to grid stability at the same time.
The VPP directs energy storage units to operate in unison, using cloud-based software, to meet peak energy demand across an entire community or service area, helping consumers utilize their own rooftop-generated solar or stored solar power during peak demand periods and reduce their power bills.
Energy storage systems not part of a VPP are unable to provide services to the grid or to benefit from the intelligent energy management provided by the grid. By contrast, when storage systems operate as part of a VPP the ultimate result is a stronger and more reliable power grid, more efficient energy management and greater value and long-term bill reductions for consumers.
The AGL virtual power plant will be capable of storing 7 megawatt hours of energy, with an output equivalent to a 5-megawatt solar peaking plant, enough power for 1,000 homes. It will also provide greater grid stability, demonstrate alternative ways to manage peaks in demand and support the higher penetration of intermittent, renewable generation on the grid.
The project will be rolled out in three phases over a period of approximately 18 months. In the first phase, running until April 2017, the first 150 customers in metropolitan Adelaide will be eligible to purchase a discounted Sunverge Solar Integration System (SIS) 5kW/7.7kWh energy storage system for AUS$3,500, which includes hardware, software and installation.
For customers with sufficient excess solar generation, this is expected to result in a seven–year payback period. Consumers currently without solar will be able to purchase a solar system of the appropriate size for their needs with their battery.
Later phases will see an offering to narrower zones within metropolitan Adelaide where peak demand management and other network support services can be demonstrated.
It is also hoped the project can demonstrate how relationships between electricity networks, retailers, consumers and the market operator can create new sources of value and stability in a renewable energy future.
The overall project cost is approximately AU$20 million, with ARENA providing conditional approval of AUS$5 million as part of its Advancing Renewables Program, which aims to support the penetration of renewables on the grid.
Sunverge has deployed hundreds of SIS in Australia and New Zealand, reducing peak load 48% and providing more than 6,100 hours of backup power over the past 12 months. Sunverge and AGL have partnered on storage installations in Australia since 2015, and earlier this year AGL became an investor in Sunverge.