- Virtual Power Plants
- Environmental Impact
- Emissions
Virtual Power Plants Are Essential to Environmental Equality
Electricity and heat generation from fossil fuel power plants accounts for more than 30% of greenhouse gas emissions worldwide, making it the largest single source of emissions. However, how people are affected by these emissions can vary greatly based on their demographical situation. In California, half of the state’s natural gas power plants are in communities that rank in the 25% most disadvantaged, while only 9% of the state’s natural gas plants are in communities in the 25% least disadvantaged. Peaker plants, fossil fuel power plants used infrequently to meet unexpected spikes in demand beyond what baseload power plants can do, are the most inefficient, polluting, and expensive sources in a power grid. These plants are usually disproportionately located in disadvantaged communities where air quality is already an issue. Although communities located many miles from fossil fuel plants can still experience the negative effects from air pollution caused by the plants, the effects are often most severe in communities located closest to them.
Reducing Emissions Can Produce Multiple Societal Benefits
Virtual power plants (VPPs) present an opportunity to provide customers with the same reliable power they have become accustomed to from fossil fuel sources but without the harmful emissions. Although there is a strong economic case for VPPs to replace peaker plants in some markets, improved economics is not the only reason to pursue emissions reductions. Reducing pollutant emissions from the power generation sector would have health, safety, and societal benefits that may not be as quantifiable as operating cost-reductions but are still of significant value to society. In addition to CO2, pollutants from power plants such as nitrogen oxides, methane, and fine particulate matter can lead to health issues in humans. Furthermore, these health conditions place an enormous financial burden on the patients and the healthcare system providing treatment. Shifting away from fossil fuel power plants altogether could help decrease the incidence of health issues related to air pollution in disadvantaged communities leading to improved quality of life for end customers.
VPPs Enhance the Effectiveness of Clean Energy Resources
As more distributed energy resources located behind the meter are installed while grid-scale renewable energy and energy storage capacity continues to increase, so too will the number of applications in which VPPs can be used. Beyond just the ability to replace peaker plants, VPPs could eventually replace baseload fossil fuel plants. VPPs are inherently flexible in their design because of their distributed and cloud-based nature, meaning new assets can be added after the VPP has already started operating with relative ease. Managing renewable energy generation, energy storage, and flexible loads through a VPP can enable constant power delivery from variable, clean energy resources. In firming up zero-carbon resources and maximizing their effectiveness, VPPs can facilitate the shift away from fossil fuel plants altogether leading to lower emissions and a better quality of life for all communities, regardless of where they are situated.