Difference between Virtual Power Plants (VPP) and DERMS/DR(Distributed Energy resource Management System/ Demand Response)
Angad Gupta ,MIEEE, BITS-Pilani
Renewable Energy | Clean Tech | DR | VPP| DERMS|EV
DERMS (Distributed Energy Resource Management System) focuses on the smooth operation of the distribution system to ensure reliability and is very site specific (DER asset location specific). On the contrary, the wholesale electricity market is as broad and connected as the entire network. The integration and management of many heterogeneous assets to supply energy to the grid or remove energy from the grid has created the virtual power plant, or VPP. The focus is on both the distribution and transmission levels and includes market services such as voltage support, energy storage, frequency regulation and energy. VPP is the name of the assembled asset and the name of the integrated platform that manages the individual components.
Virtual Power Plants Power Without Station
Virtual power plants manage active power across the entire hardware base to provide network services that are highly independent of the location of individual devices such as power supplies or circuits. They generally provide system-wide benefits related to increased or decreased generation or load and are concentrated in larger areas such as cities, districts, states or ISO/RTO regions. Network services for which VPPs are optimally used include:
Demand Response/Capacity
DERMS (Distributed Energy Resource Management System)- Location Specific
Services. are highly dependent on the specific location (network connection) of each asset. Network services managed by DERMS are provided by manipulating current flows according to individual power supplies and include:
DERMS can manage both real power (watts) and reactive power (VAR) and increase load. on one part of the feeder reducing the load - and increasing production - on another part of the same feeder. DERMS typically requires more back-end system integration than VPP due to the requirement for location network and asset status information. DERMS applications require integration with a utility, typically through a DMS, ADMS, OMS, or SCADA system.
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Why Does this Matter?
Whether or not a VPP or a DERMS is the optimal choice for a utility depends upon how the DERs will be used – and when. For utilities with an initial vision of controlling edge devices for applications demand response, energy arbitrage and peak demand management, a VPP is probably the best choice. A VPP can deliver significant benefits and meet near-term goals, while avoiding the larger up-front investment of integrated with DMS, ADMS, OMS or SCADA systems.
For a utility with location-specific and distribution-focused applications aimed at orchestrating at a distribution feeder level to regulate grid conditions and better prevent system excursions, blackouts and power outages, a DERMS is needed.
It’s important to note that a logical, phased approach that begins with a VPP and transitions to a DERMS over time is entirely feasible and provides logical path to follow as utilities gain more familiarity with real-time control and optimization of DERs and start to experience greater urgency for distribution-level grid balancing support. The foundation for a reliable, sustainable energy future rests on more distributed and intelligent networks of power. VPPs and DERMS are the means to this end, enabling both the producers and consumers of energy to harness the power of distributed energy.
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