As the energy transition gathers speed and decentralized energy resources increase, regulators face mounting pressure to keep the grid reliable, flexible and affordable. Virtual power plants, a digital network that coordinates rooftop solar panels, batteries, electric vehicles and other smart devices, can help achieve all three goals at once. Research finds that VPPs can deliver grid services such as resource adequacy at a fraction of the cost of conventional generation and are deployable within months instead of years.

To help explain the business models and regulatory topics to consider when establishing virtual power plants, authors Shawn Enterline, Alejandro Hernández and Bibiana Sáenz studied Australia’s market-focused model and Hawaii’s utility-led approach. They demonstrate how different regulatory frameworks can enable the same outcome: more efficient, lower-cost and customer-centered power systems.

For Thailand, these lessons are particularly timely. As it charts a path to fulfil its Smart Grid Master Plan, the nation could turn its ever-growing stock of electric vehicles, solar panels and smart devices from passive demands on the grid to active sources of grid services. The authors offer four key actions that could help Thailand take advantage of the benefits of virtual power plants by

• Conducting a national study to assess the potential for flexibility across the entire electric system, from the distribution system up to the transmission system.
• Considering a utility-led virtual power plant model aligned with Thailand’s enhanced single-buyer market structure.
• Considering competitive distributed capacity procurement, a process that can treat distributed energy resources the same as traditional grid investments.
• Forming multi-stakeholder working groups to improve data sharing and coordination.

Learn more about how Thailand and other regions can turn customer-owned technologies into valuable electricity system resources; cutting costs, boosting reliability and accelerating the clean energy transition.

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