Yes so VPP is a Virtual Power Plant. Typically we've had power generation very centralised. So we've had it centralised in coal plants, in gas plants, in hydro plants as well. What we're seeing with battery technology that's installed in homes and businesses. Is this ability to spread that power plan across multiple locations. So you could have 5,000 batteries installed in 5,000 different places. But the technology that stitches them all together, makes them work as one. So it doesn't matter whether it's all coming from one particular location, all these batteries respond to commands. They respond to price signals in the wholesale market, that provides that control layer across all these batteries, that allows them to work in a coordinated fashion.
Really the key thing here is connecting these batteries to the grid in such a way that they provide, more value to the grid than just the self-consumption benefits for the homeowner. Really what that means is that all these batteries work together. They might be in disparate locations, they might be installed with slightly different technology, but they all work in unison to support the grid when there's issues with the grid. For example a voltage problem, or an outage these batteries kick in and export power to the grid, to support that grid when it's in a state of need. So one of the additional benefits of having a battery in is that you can charge it when the rates from the grid are cheap. So for example off peak time during the night, and then you can use that when you pay more for power, in the early hours of the morning. So having a smart control layer allows you to do all of these things with your battery.
What is a solar power Virtual Power Plant (VPP) and how does it help you make money?
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