Virtual Power Plants: Power Plants of the Future in India

Growing penetration of Distributed Energy Resources (DERs) and Renewable Energy (RE) in the Indian network is leading to several changes in the system operation. Due to these changes, coordinating operation of the entire power system has become complex. A Virtual Power Plant (VPP) can be one of the effective solutions to manage this transformation. VPP is a portfolio of DERs, which are connected by a control system based on Information and Communication Technology (ICT) [1]. A VPP aggregates the capacity of many diverse DERs and creates a single operating profile from grid’s perspective. This paper will describe the usefulness and opportunities of VPP in India. In addition to discussing the definition and types of VPP existing across the globe, the paper will also highlight the general benefits of VPP for different entities across the electricity supply chain. The paper is segmented into four sections: (i) Defining VPP and its type, (ii) Relevance and plausible schemes of VPP in India, (iii) Example illustrating an opportunity for VPP in India, and (iv) Recommendations and way forward for the Indian market to adopt VPP technology. The objective of the paper is to give an insight to the readers about this concept and to provide a perspective to the Indian stakeholders for considering the implementation of VPP.