Virtual Power Plant. A fleet of distributed energy assets (home batteries, EVs, hot water systems) coordinated by software to act as a single dispatchable unit in the NEM. VPPs register with AEMO and bid into FCAS and energy markets just like grid-scale BESS. Examples: AGL VPP, ShinHub, Energy Locals, Simply Energy, Origin Loop.
A Virtual Power Plant (VPP) is a fleet of distributed energy resources — typically residential batteries, but sometimes also electric vehicles or hot-water systems — coordinated by software to act, from AEMO's perspective, as a single dispatchable unit. VPPs register with AEMO and can bid into the energy and FCAS markets on the same basis as a grid-scale battery, aggregating many small, individually unregistrable assets into one that is.
Several retailers and aggregators operate VPPs in the NEM today, including AGL, ShinHub, Simply Energy, Energy Locals and Origin Loop. NEMPulse tracks their FCAS enablement and estimated revenue the same way it tracks a grid-scale BESS, on the VPP page.
See also: Virtual power plants
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