Utilizing the Potential of Information

As renewable-energy harvesting technologies mature, eco-friendly energy is gradually becoming a feasible alternative to traditional, environment-unfriendly power sources. Nevertheless, this increased reliance on green energy sources poses challenges to grid stability. A robust power grid relies greatly on balancing power supply and demand, but the unpredictability of green energy introduces various complications. Thus, technology enabling grids to swiftly adapt to power fluctuations becomes essential in ensuring a more resilient grid. This is where virtual power plants come into play in the energy landscape.

Virtual power plants (VPPs) represent a decentralized “Internet of Energy” that evolved with the advancement of IT and Industrial Internet of Things (IIoT) technology. Differing from traditional centralized power plants, virtual power plants source energy from a wide range of resources beyond just centralized facilities. They draw energy from diverse sources such as renewable energy power plants, rooftop solar panels, energy storage batteries, and electric vehicles. To efficiently harvest and distribute power from both traditional and unconventional sources, real-time monitoring is vital. Envision a scenario where electric vehicles serve as the primary mode of transportation. During peak power demand periods, VPPs can trigger parked vehicles at charging stations to redirect power to the grid to address urgent requirements. Conversely, surplus renewable energy can be stored in these vehicles when excess energy is generated.

VPPs also play a critical role in minimizing energy wastage by ensuring supply matches demand. One common form of energy wastage is discarding excess renewable energy generated for a specific area. However, in a virtual power plant setup, this waste can be averted. For instance, when wind-powered energy supply exceeds grid demand, power consumption can be encouraged by reducing prices through a time-based pricing mechanism. This effectively addresses the issue of wasted power due to imbalances in supply and demand.

Clearly, virtual power plants provide a solution for our future energy needs. However, before this becomes a fully realized concept, certain challenges need to be addressed. Building grid resilience through a virtual power plant necessitates extensive real-time data collection to make informed decisions. Effectively, the VPP must have a “vision” to operate efficiently. To answer critical questions such as the amount of renewable energy to integrate into the grid, user energy requirements, ongoing electric vehicle charging status, and more for clear decision-making, a vast amount of data is essential. Nonetheless, establishing IIoT infrastructure in the energy sector is not as straightforward as installing an app on a smartphone. Data collection may require equipment installation in extreme environments like next to a solar power plant in a desert or near a sea-based wind turbine, facing harsh conditions including salty winds. Additionally, collecting data entails incorporating diverse industrial designs and necessitates skilled manpower, making this a daunting task. Let’s delve deeper into how IIoT technology aids virtual power plants in establishing a robust, enduring data foundation.

Gaining Insights: Deciphering Power Distribution Networks

Real-time knowledge of load changes is crucial for distribution system operators (DSO) to maximize power grid efficiency, especially with the growing prominence of electric vehicles. A German DSO faced a significant challenge in 2020 as they were unable to access electricity consumption data for a low-voltage grid. Hence, the operator turned to IIoT technology to enhance transparency in substation power data. This aimed to translate 21 data categories from feeders (such as voltage, current, frequency, active/reactive power) collected every minute into easily understandable information for operators. This information, combined with an optimized EV charging management system, could enhance power distribution to serve the 2.3 million households effectively.

Nevertheless, feeders from substations vary in quantity, size, and location, with strict security measures in place to prevent unauthorized access. This situation raises two critical challenges: swift IIoT deployment with minimal manpower and efficient interconnection of IIoT devices across diverse substations to ensure safety. Addressing these challenges, IIoT infrastructures must fulfill basic requirements of being user-friendly, secure, and capable of seamless upgrades. As a result, numerous system developers are exploring suitable solutions.

In this context, a system integrator proposed an end-to-end solution facilitating quick and secure deployment of IIoT devices without altering substation design. This solution allows operators unfamiliar with IIoT technology to install devices with ease. Moreover, settings can be managed remotely on a cloud device management platform, enabling automatic import of settings post-security certifications, eliminating tedious activation steps. Apart from easing personnel expertise and resource allocation issues, this solution enables remote patches, expediting grid upgrades and promoting the “Internet of Energy.”

Optimizing Operations: Real-time Management

Renewable energy generation historically suffered from instability and unpredictability, necessitating controlled supply and demand management for sustainability. Achieving an optimal supply-demand balance requires real-time monitoring and control, a challenging feat. For instance, per certain national grid codes, renewable power plants must adjust grid-connected power within 150 milliseconds, highlighting the importance of stable and reliable real-time data collection. However, maintaining stable data transmission poses challenges due to data-hosting equipment located outdoors in expansive terminal sites exposed to harsh elements. To ensure uninterrupted data flow and prevent data loss, high-end network redundancy technology is employed to transmit data via backup networks when primary networks fail, resulting in a precise, continuous, real-time monitoring and control system. (Explore GreenPowerMonitor, DNV’s remarkable success story here.)

Mutually Beneficial Solutions for Users and Operators

Besides monitoring remote outdoor sites for operators, insightful data can also be gleaned from advanced metering infrastructure (AMI) penetrating homes and buildings deeply. AMI renders electricity consumption information transparent, enabling consumers to track their usage down to the second via their mobile devices. Simultaneously, grid operators can expedite repairs by efficiently diagnosing issues through data insights, thereby enhancing overall operational efficiency.

utilizing AMI for detecting anomalies in real-time without relying on user alerts. Moreover, once real-time user data is acquired, the electricity consumption “waveform” distribution for each household can be computed to gain a better comprehension or even foretell the consumption during various intervals. This data can assist users in preventing wastage by turning off the air conditioner in unoccupied areas or aiding service providers in aligning prices for specific time slots. However, for this to be accomplished, precise electricity consumption data must be securely relayed back to the operator’s system. Although household meters are not subjected to the same harsh conditions as outdoor counterparts, the layout of each deployment area typically exhibits complexity and diversity with significant human influence. Even a minor lapse in attention could potentially compromise communication stability. This could lead to the operator receiving inaccurate electricity usage data and consequently miscalculating the electricity consumption. To prevent data loss, a store-and-forward technology is employed when communication breaks down. Meter data is first stored and then transmitted once communication is reestablished to safeguard the interests of both users and operators.

Trading Virtual Power

As information becomes more transparent and the costs of renewable energy technologies become more economical, consumers can also transition into producers. In essence, selling electricity back to the power grid promptly is now feasible. This transition enhances the flexibility of supply-demand scheduling. However, to realize this level of flexibility, a robust and decentralized network is essential. Consequently, an increasing number of countries are integrating virtual power plants with blockchain technology. Through blockchain’s smart transaction contracts, the secure and seamless purchase and transfer of energy can be guaranteed by leveraging the decentralized, transparent, and immutable characteristics of blockchain. Essentially, this empowers consumers to opt for more economical, at times unconventional sources, such as their neighbors, bypassing intermediary aggregators.

Through IIoT technologies, power grids evolve from experience-driven management to data-informed management. With the involvement of various platforms and the engagement of the general populace, the grid can become more robust. Utilization rates of power will surge, wastage of power can be curtailed, and a realm of heightened energy efficiency can genuinely be achieved.

For further insights on IIoT technology in virtual power plants, access our white paper here.