South Africa's network of virtual power plants is growing rapidly. SA says the potential of VPP is still largely untapped. Siyanda Muhlatelwa and Daniel Zinman.
Virtual power plants (VPPs), increasingly used in South Africa, are networks in which different power sources, such as wind, solar and battery energy storage systems, work together, sometimes in different locations.
There are currently at least five utility-scale VPPs under construction or in operation in South Africa, and the number is expected to grow due to the country's transmittable energy needs.
They mainly benefit commercial and industrial enterprises across the country, but are also increasingly being used in localized applications such as residential complexes.
And not only are they expected to add significant amounts of energy to the grid, but they also analyze data to make informed decisions about how to best and most economically manage and distribute energy sources. We are taking advantage of the wave of advances in AI by using algorithms that can. in real time.
VPP operators use smart software to connect these distributed energy resources to act as a single, consistent power source. This allows them to sell power to the grid, similar to traditional power plants, but with the ability to choose the source technology at any time.
These plants are designed with multiple layers of redundancy in the controller system to accommodate any failure or transmission interruption in the VPP system.
South Africa's ongoing energy crisis and resulting load shedding, combined with its superior renewable energy resources and improvements in battery energy storage systems (BESS), create a favorable environment for VPP.
VPP helps reduce both load shedding and grid instability by integrating more renewable energy and providing flexible generation. Providing power when the grid is most constrained can often better match supply and demand on a regional or national basis.
Many of the major local and international independent power producers (IPPs) established in the SA market are active in this fast-growing sector, including Engie, EDF, Red Rocket, ACED and Scatec. The ongoing Umoiranga project, funded by French renewable energy group EDF Renewables and Renminbi, is one example.
By the end of next year, it will be South Africa's first separate yet integrated utility-scale virtual wind, solar and BESS power plant. The project will be procured under the government's Risk Reduction IPP Program (RMIPPPP) and will utilize 75MW of electricity that can be transferred to the national grid, which Eskom can request at short notice.
Meanwhile, the recently announced Oya Energy project, in which RMB is partnering with Engie, one of the world's largest IPPs, will consist of solar PV, wind power and BESS, each of which has potential in the South African context. It becomes a large-scale plant by itself.
When combined and located on the same site, they provide 128 MW of contracted capacity, which Eskom can request to be dispatched at specified times. Power supplies can be optimized as needed to meet that demand. This means that output can be controlled to match fluctuating electricity demands across the country within a specified period of time.
These power plants serve as significant renewable energy power plants by global standards.
The government recognizes the potential of VPP to help reduce load shedding. Eskom has also introduced a standalone BESS program that allows it to better meet peak demand periods by storing excess generation during off-peak periods. This will also free up additional grid capacity in certain areas where renewable energy power plants are already installed. This will enable greater renewable energy development.
VPP has many advantages and is expected to support its growing popularity. VPP helps balance fluctuations in renewable energy generation by combining multiple power sources. You can also optimize your energy usage by using energy from the most cost-effective source at any given time.
By integrating more renewable energy, VPP helps reduce dependence on fossil fuels and reduce greenhouse gas emissions. VPP allows households and businesses to participate in the energy market, potentially allowing them to generate income from their own electricity generation and flexible energy use.
VPP collects vast amounts of data from each instance's integrated technology, including power generation from solar panels and wind turbines, battery energy storage levels, and real-time power grid status and weather forecasts. Using this data, AI can more accurately predict energy generation from renewables and electricity demand.
This allows for better planning and resource allocation within the VPP, optimizing resource usage and minimizing energy waste, allowing the VPP to operate more efficiently. By accurately predicting and responding to changes in weather, demand, and power generation, AI can contribute to the more stable and reliable dispatch profile SA currently requires.
And as AI capabilities develop further, we will be able to significantly improve the management of complex power combinations within VPPs. AI is therefore expected to play an even bigger role in optimizing the performance of these plants and contributing to a more sustainable and reliable energy future.
Countries such as Germany, the Netherlands, Australia, and the state of California are considered leaders in VPP development. All have supportive policies, regulations, and market structures that foster the development of VPPs.
VPPs are not yet widespread in South Africa, but early projects and industry interest suggest they could play an important role in the country's future energy landscape at both regional and national levels. doing.
Siyanda Mflathelwa, Head of PPPs and Concessions, and Daniel Zinman, Head of Power, RMB Infrastructure Sector Solutions Team, said:
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