| Work Detail |
China is developing its first gigawatt-scale residential virtual power plant (VPP) in Jiangsu province, aiming to integrate millions of high-power appliances into a cloud-based energy pool to improve grid stability and harness renewable energy. The gigawatt-scale virtual power plant (VPP) project, launched by Jiangsu Electric Power Company, part of State Grid Corporation of China, will bundle devices such as air conditioners and electric water heaters from millions of households. By leveraging advanced technologies such as big data, the Internet of Things (IoT) and AI, the VPP will enable more efficient load management, especially during peak demand seasons in summer and winter. Homeowners will be able to participate in demand response programs and receive financial incentives for adjusting their energy consumption. “When strong electricity demand is forecast, the grid operator will send invitations to residents via their mobile devices, encouraging them to adjust the temperature of high-power appliances to reduce consumption and get rewards on their electricity bills,” Duan Meimei, head of the load management center of Jiangsu Electric Power Company, told Xinhua News Agency in an interview. According to the companys estimates, a one-degree Celsius adjustment in the temperature of a typical household air conditioner can reduce energy consumption by about 0.06 kW. Given that there are about 43 million household air conditioners in Jiangsu, a one-degree adjustment could translate into a power change of nearly 2.6 GW. Unlike traditional physical power plants, VPPs use digital technologies to integrate and optimize distributed energy resources and electrical loads. They play a crucial role in the transition to a more flexible and sustainable energy system and are considered a key component in achieving carbon neutrality goals. By October 2024, Jiangsu Provinces renewable energy capacity will have surpassed that of coal, becoming the provinces main source of electricity. Duan noted that future expansions of the VPP will include domestic electric vehicles and charging piles to further improve its flexibility and impact on the grid. This initiative is expected to significantly improve the efficiency of renewable energy generation and consumption in the region, providing an example for many other Chinese provinces with increasing renewables. |
