- What is a VPP?
- Why are VPPs needed for grid stability?
- How do VPPs, utilities, and DER work together?
- How can energy management solutions support a path to climate neutrality?
- What role do EVs play in the energy transition?
- What can stakeholders do to drive the adoption of EVs as a grid resource?
Developing Virtual Power Plant Applications for Managed EV Charging Platforms
EV market share is rapidly growing, in personal and in commercial and industrial fleets. Coupled with renewables in other sectors, increasing EV deployment has put a strain on electricity grids, which will likely continue as the market grows. In response, utilities and grid operators are working with EV and charging OEMs to use EVs in virtual power plants (VPPs), as a grid resource instead of a grid strain. VPPs can help EV owners save money, and in some cases, profit from their distributed energy resource (DER). In a period of market evolution, companies are forming partnerships and pilots throughout the VPP and EV industry to develop this new business model.
EVs will be an important aspect of the DER available—wholesale, retail, and behind the meter. They must be effectively integrated with other clean power alternatives to prove an effective resource, which a VPP can do. VPP software, at a basic level, can provide data for utility knowledge about households that have an EV and their charging patterns. Utilities can use this knowledge to bill at different rates and provide incentives based on time of use. They can also provide managed charging services.
This Guidehouse Insights study provides background on what has happened in the VPP market thus far, how these events affect industry players, and what actions they can take to prepare for the transition.
- Regulators and policymakers
- Grid operators
- DER vendors
- VPP software providers
- DERMS vendors
- DER aggregators
- Commercial, industrial, and institutional energy consumers
Driven by Multiple Factors, EV Adoption Is Increasing Worldwide
Transportation Electrification Is Now a Common Strategy
EVs Have a Significant Impact on the Grid
Energy Management Systems Are Evolving
EVs Must Be Integrated with Other New Technologies
EVs Can Complement Other DER
Integrating Solar and Wind Energy Poses Challenges to the Grid
Case Study: CAISO Duck CurveVPPs Present New Opportunities for EVs and EVs Present New Opportunities for VPPs
VPPs Provide Potential Energy and Dollar Savings
Case Study: Bidgely Southeast US EV Managed Charging Pilot
Stakeholders Must Be Proactive in Preparing Grids For EVs
Utilities Must Adjust Their Tariff Structures to Enable Smart Charging
EV Manufacturers and Charging Infrastructure Suppliers Must Form Partnerships
VPP Operators Must Engage with Customers and Other Stakeholders
- V1G vs V2G
- CAISO Duck Curve
- Peaker Plants and VPP LCOE During 2022